Inflationary pressure erodes margins despite rising dwell time

Darkest hour: Stout driving sales in craft beer market
Growing disconnect: Inflationary pressure erodes margins despite rising dwell time (Getty Images)

Real-terms growth remains under pressure despite improved dwell time in the on-trade during November, new research has revealed.

Average dwell time in pubs and bars reached 144 minutes last month, the latest Market Watch Snapshot from Oxford Partnership showed.

This was an increase from 142 minutes in October and marked the highest recorded level this year.

While improved engagement offered some encouragement, it has yet to translate into meaningful value growth.

Average spend per head increased to £26.24. However, once adjusted for 3.5% inflation, actual spend equated to £25.35 per head. Rate of sale also softened once again.

Inflationary pressures

Food inflation of 4.2% and drink inflation of 4% also continued to outpace headline inflation, limiting margin recovery even as nominal spend improves.

The number of operating venues also contracted last month, edging down to 99,350, reinforcing a trend seen throughout 2025.

Opening hours remained steady at 64.6, despite ongoing pressure from rising costs, particularly wages and energy.

Drinks wise, stout and world lager continued to outperform the market, while premium lager remained resilient.

Craft, ale and cider remained under pressure as consumers narrowed their choices and reduced experimentation.

Oxford Partnership CEO Alison Jordan said the data highlighted a growing disconnect between time spent in venue and value generated.

Growing disconnect

“What we’re seeing is customers committing to the occasion but not to the volume,” she said.

“Longer visits and fuller venues feel positive, but they’re not yet translating into stronger value at the bar. For operators, profitability remains heavily dependent on footfall rather than how long customers stay.”

Looking ahead, Jordan warned festive success would depend on visit frequency rather than longer sessions.

“The key question for Christmas isn’t how long customers stay, but how many come through the door,” she continued.

“Without a meaningful uplift in footfall, longer dwell risks simply spreading spend more thinly.”