Food-led visits drive record spend in pubs

Consumers eating and drinking out earlier
Record spend: Sector showed signs of recovery in March, but overall volumes down YOY (Getty Images)

March delivered a record high in spend per head across the on-trade, driven by food-led occasions and a continued shift towards premium serves, according to new data.

Figures from real time market intelligence firm Oxford Partnership indicated solid recovery across the hospitality sector last month, with stronger demand, longer visits, and record spend per head.

However, despite the positive momentum, overall volumes remain below last year, highlighting a continued gap between consumer engagement and actual consumption.

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Average occupancy rose to 65.4%, up 1.1 percentage points (PPT) year-on-year (YOY), while dwell time increased to 153 minutes, a 3.4% uptick, attributed to improve weather, seasonal tailwinds and sporting occasions such as the Six Nations Rugby Tournament.

Record high

Meanwhile, spend per head reached a new high of £26.91, continuing a steady upward trend driven primarily by food-led occasions. While drink spend also increased, the data suggested consumers are prioritising experience and duration over drinking intensity.

Total volumes rose 9.9% month-on-month, signalling improving demand as the market moves beyond the post-Christmas slowdown. However, volumes were down 2% YOY, underlining that recovery is gradual rather than complete.

Category wise, stout held steady as the standout performer, growing 7.1% on a moving annual basis, while World Lager also proved resilient.

In contrast, core lager, premium 4% lager, craft and ale remained under pressure, reflecting ongoing shifts in consumer behaviour.

Improving demand

Additionally, despite improving demand, operators continue to face significant cost pressures, including wages, utilities and input costs, limiting margin recovery.

Commenting on the findings, Oxford Partnership CEO Alison Jordan said: “What we are seeing is a market that is clearly improving, but not yet fully recovered.

“Consumers are coming back, they are staying longer and spending more, but they are drinking differently.

“Value is now being created through longer, more experience-led occasions rather than higher consumption. The key challenge for the sector is converting this strong engagement into sustainable volume growth as we move into the summer months.”