The Monthly Round: Pubs stay resilient as events and value boost footfall

MA's Monthly Round
The Monthly Round: Pubs stay resilient as events and value boost footfall (Getty Images)

Operators report mixed but resilient trading amid economic pressures and Budget uncertainty, with events, value and experiences driving footfall, The MA’s first Monthly Round snapshot has revealed.

At the Royal Dyche in Burnley, owner Justine Lorriman told The Morning Advertiser (The MA) business had been strong thanks to a series of well-marketed events.

The award-winning operator said today’s customers “want an experience rather than just a pint in the pub”, while social media-friendly events and themed nights helping the venue reinvent itself.

“We had a very successful Halloween event, the busiest we have ever had.

“It seems to grow year-on-year and it really helped with it being on a Friday this year,” she said. “And we also hosted our own bonfire night event, which again had grown from the previous year.”

Lorriman added her team had been “trying different things” including RTD cocktails, cocktail masterclasses and ‘paint and prosecco’ events on quieter weekends.

In addition, non-alcoholic options have continued to gain in popularity at the Lancashire pub as well as increasingly earlier visits.

Patchy summer

A new partnership with a nearby restaurant to offer table ordering via QR codes has also helped keep customers in the Royal Dyche longer, Lorriman added.

Meanwhile, in Norwich, owner of the Murderers/Gardeners Arms Phil Cutter reported “buoyant” trade despite a patchy summer, with footfall increasing as Christmas approaches.

An increased number of sporting events has helped boost trade at the award-winning pub, Cutter said, adding the Autumn Internationals on TNT also helped improve footfall.

Consumer habits, however, continue to evolve. “Working from home continues to see offices empty and reduces footfall early in the week,” he said.

Peach Jubel is also flying at the moment. Food sales continue to be slow, with large meals being replaced with sandwiches, nachos and loaded fries.” Cutter also noted “a push in new keg stouts” challenging Guinness, including Murphy’s and Caffrey’s.

Meanwhile, Oak Taverns director Simon Collinson said premium lager and heritage cask beers had seen a resurgence over the summer, driven by brands like Hawkstone, Bass, Harvey’s and Boddingtons.

At Cheshire Cat Pubs & Inns, owner Tim Bird said trade had remained solid despite eight weeks of road closures affecting several of the pubco’s North West sites.

“There is pressure everywhere but mostly on labour and there is a lot to be concerned about with the Budget”

JW Lees managing director William Lees-Jones

“The key is we don’t have to change anything if our guests love what we do… we only have to get better and better at it,” he told The MA. “Right now we must simply focus on delivering great food and drink, served by great people at great value for money.”

Elsewhere, Barr & Barr Hospitality Group, which runs several sites across West Sussex and Devon, has seen sales rise around 6% year-on-year at its venues.

Owner Rob Barr said lunch trade and draught sales had been particularly strong, reflecting a shift towards “value dishes and deals”, adding “perception of value, reason to visit and strong service” were key drivers of footfall.

Ahead of the autumn Budget, JW Lees managing director William Lees-Jones told The MA consumers were spending more cautiously as businesses across the sector continue to feel the squeeze.

“Trade is okay but we are seeing purses tightening following a very strong summer,” he said.

“There is pressure everywhere but mostly on labour and there is a lot to be concerned about with the Budget since the sector continues to be hit hard by the Chancellor.”

Volatile trade

He warned increased taxes and costs were leaving “very little left in the profit column.

“I do not think I’ve ever seen things so tough in my 30+ years in the industry. I worry after Christmas many pub landlords will throw in the keys since it’s all too much,” he added.

In Suffolk, owner of Top 50 Gastropub the Unruly Pig Brendan Padfield echoed Lees-Jones, describing trade as “volatile”.

“Thank goodness we still have zero hours contracts, which can at least help mitigate labour costs when trade is so unpredictable,” he said.

“Goodness knows what we will do when the Employment Rights Bill receives the Royal Assent. This Government lives in cloud cuckoo land.”

While many operators report healthy event-driven trade and strong drinks sales, it’s clear mounting costs, labour pressures and uncertainty around Government policy continues to weigh heavily on confidence.