Speaking in a video interview shown at the British Beer and Pub Association’s (BBPA) Future of Beer & Pubs 2026 conference last week, Kerridge said operators were facing pressure from multiple cost lines, including business rates, wage inflation and wider business costs.
He said a VAT reduction would help release pressure on hospitality businesses, adding that if operators had 10% of revenue back, many would use it to address financial pressures within their businesses.
The comments came as BBPA chair and Greene King CEO Nick Mackenzie said the beer and pub sector must do more to prove its value to government, communities and the wider economy.
Volatile trading
Opening the conference, Mackenzie said the industry could not assume trading conditions would remain consistent “from month to month, let alone from year to year”, and said businesses needed to adapt in order to remain viable.
He said pubs and breweries continued to support economic growth, jobs, careers and communities, but added that political and global turbulence had made the case for support more urgent.
Mackenzie also referenced Greene King’s Releasing Potential programme, which helps prison leavers get into hospitality roles, as an example of the wider social impact pubs can deliver through employment and training.
The role of pubs as community assets was a recurring theme throughout the conference, with operators discussing how the sector can better evidence its social and economic contribution.
Jon Dale, corporate affairs and ESG lead at Punch Pubs, said the business had sought to move the conversation around pubs’ social value “beyond anecdote” through independent research.
He said Punch’s research had attempted to quantify the social and economic value pubs bring to communities, including through a community engagement index measuring both economic and social impact.
Dale said having demonstrable numbers was important when speaking to government, with the research helping to support conversations about the role pubs play in local communities.
Gen Z
The conference also explored how pubs can engage Gen Z consumers, with panellists warning against assumptions that younger consumers are not going out.
Data discussed during the Gen Z panel suggested younger consumers remain highly active in hospitality, but are more intentional about when and how they drink.
Speakers said Gen Z consumers are looking for value, quality, authenticity and experiences, with pubs well placed to respond through live music, sport, games, community events and a strong drinks range.
Panellists also highlighted moderation as a key behaviour among younger consumers, but said this did not necessarily mean abstinence. Instead, operators were urged to ensure occasions feel worthwhile and inclusive, with low and no, premium drinks and activity led experiences all playing a role.
Sustainability was also framed as a business resilience issue rather than a standalone ethical commitment.
Speakers on the sustainability panel said businesses were increasingly focused on energy, packaging, agricultural security and supply chain resilience, with sustainability described as a strategic question linked to long term viability.
The conference closed with BBPA CEO Emma McClarkin saying the sector must continue to engage with government and ensure the pub journey reflects changing consumer expectations without losing authenticity.
