The impact of AI and low and no on the pub of 2035

Two industry leaders have revealed their predictions on how AI and low and no will shape the sector in 10 years’ time.

British Institute of Innkeeping (BII) chief executive Steve Alton said technology will be an enabler, helping operators to trade more efficiently and know more about customers.

He added: “That personal service and connection will be so much better. The ability to data mine, all the things we buy, where we go what we enjoy, all the things we said about something, will be so easy to get hold of and we can really lean in.”

He also outlined the impact of AI on operating in 2035, helping to manage costs and stock levels, which could aid cash flow.

“AI is a phenomenal engine and is amazing in what it does today, so imagine what it is going to do in 10years’ time,” Alton said.

Moreover, the BII boss hoped legislation will be “light tough” in a decade.

Exponential growth

He said: “We don’t need a plan for growth, we don’t need a plan for innovation. We’ve got brilliant entrepreneurs, they need the space...we need to see that taxation pressure drop, to allow them to be the brilliant operators they are and invest in their businesses.”

Furthermore, he predicted an acceleration in low and no when it comes to drinks in the future.

Butcombe Group chief operating officer Jayson Perfect also highlighted how the category is evolving rapidly.

“The no and low element of still having a reason to come to the pub without having to always drink high alcohol content products is very much in the forefront of a lot of our customers’ minds at the moment,” he said.

“We have five low and no beers and ciders etc in our business, low and no is now worth 5% of our draught volume within our business and in 65% growth year on year.

“It is growing at an exponential rate within the industry overall.”

Utilising AI

Perfect also discussed AI and the opportunities it currently offers to operators.

The pub group boss said: “The marketing element of what we’re doing with AI at the moment is spectacular. It can really help with generating ideas to landing something within the public domain.

“Utilising AI in the right way can be fantastic.”

He echoed Alton’s comments around efficiency and the positive impact this could have on operating.

“From a back of house element, we could see some real savings, I don’t mean head count in particular, it’s more about the AI versions that can help with stock take, understanding trends within your business, there’s quite a bit we can utilise AI for to support that,” he said.