Beyond the pint: why operators are investing in experience

Operators are investing in entertainment, technology, design and programming to create reasons to visit that extend beyond traditional food and drink occasions.

The trend forms part of a wider shift identified by Lumina Intelligence, which found pubcos were segmenting estates around clearer food, sport, community, accommodation and experience led roles.

For experience focused operators, the aim is to create something customers cannot easily replicate at home.

Lumina said growth was becoming concentrated among premium and experiential concepts, with Little Door & Co forecast to lead pub and bar outlet growth at 40%.

Vagabond followed at 16.7%, while Flight Club was forecast to grow its estate by 6.7%. Little Door & Co also topped Lumina’s sales growth forecasts at 19.3%, followed by Vagabond at 14.4%.

Red Engine chief executive and co founder Steve Moore told The Morning Advertiser (MA) that this thinking had underpinned Flight Club since the concept was created.

“People are going out less, and they’ve got less disposable income, so when they do go out, they want it to count. They’re not looking for just another bar. They want something memorable that justifies leaving the house.”

Flight Club now operates 34 venues across the UK, US, Australia and Ireland, with Red Engine seeking a partner to support further European growth.

Its venues combine high tech darts with theatrical interiors, hand sourced antiques and locally influenced design, while camera tracking, automatic scoring and live action replays turn the game into a more immersive group experience.

Reasons to visit

Little Door & Co founders Jamie Hazeel and Kamran Dehdashti also pointed to increasingly selective consumer behaviour.

“People haven’t stopped going out, they’re more selective about when they socialise and, when they do go out, they want it to feel worthwhile. They’re looking for somewhere memorable, somewhere that gives them more than just a drink, a story, an experience, a sense of belonging, something magic.”

The operator’s venues are built around the theme of a house party, combining cocktails with karaoke, games, DJs and different trinket-filled rooms designed around changing occasions throughout an evening.

“We’ve always believed that design, music and entertainment aren’t additions to the business model, they’re fundamental to it.”

The strategy has translated into 26% year on year growth in walk ins, a 19% increase in covers and 16% like for like growth, with annual revenue reaching £13.5m.

The group also generated EBITDA of more than £1.35m last year and has secured funding from ThinCats to support further expansion, targeting locations outside of London.

Incipio chief executive Ed Devenport similarly said food and drink had become the baseline rather than the entire proposition.

“Great food and drink are now the baseline,” he told the MA. “Increasingly, people are looking for memorable experiences and occasions that give them a reason to choose one venue over another.

“That’s why we’ve invested heavily in programming, entertainment and distinctive concepts across our estate, from immersive brunches to live music and major sporting events.”

Across its estate, Incipio builds themes into individual concepts, from Wall Street Wednesdays at New York-inspired The 411 in Angel to the Latin American-styled Palm House in Victoria, alongside immersive brunches, live music and major sporting events.

NEOS has taken a similar approach by building different brands around clearly defined experiences rather than one proposition designed to appeal to everyone.

Its concepts include Bavarian inspired Barbara’s Bier Haus, where themed interiors, music and programmed entertainment are designed to create a full night out rather than a standard bar visit.

The concept is also being rolled out further across the estate, with NEOS set to convert its Revolución de Cuba site in Leeds into a seventh Barbara’s Bier Haus following a major refurbishment, reopening in October.

Chief executive Russell Quelch told the MA: “A clearly defined concept gives customers a much stronger reason to choose one venue over another. Entertainment, design and programming are all fundamental to that. They’re not bolt ons, they’re built into each concept from the outset.”

He added experience led venues helped build stronger loyalty because customers connected with the personality of a concept rather than simply viewing it as somewhere to have a drink.

Built to scale

Vagabond has developed its proposition around exploration and participation, with more than 100 self serve wines available by the glass alongside digital tasting flights, seasonal food and wine focused events.

Majestic Wine Group executive chairman and chief executive John Colley said consumers increasingly wanted a more engaging experience from hospitality.

“Consumers want more than just a plate of food and a glass of wine placed on their table. They want a memorable, engaging experience where they learn something new.

“Our tap and pour model allows that by making wine fun and accessible. Guests can explore our wines at their own pace, using smaller tasting measures to try new styles without the cost or intimidation of committing to a full bottle.”

The experience extends beyond the self serve machines, with WSET educated teams hosting cheese and wine tastings, jazz nights, courses and blending workshops at its Canada Water Urban Winery.

As Colley put it: “Vagabond isn’t just a bar with some fancy tech. It’s a destination for exploration and education, giving our guests the freedom to shape their own experience and discover new wines on their terms.”

Two thirds of Vagabond guests have ordered more than once, while 41% have ordered at least three times and 18% at least five times. More than 25,000 samples have also been poured through its digital tasting flight programme.

The group currently has 14 sites and plans to grow the estate to 25 locations by 2031.

Colley said the core tap and pour model could be retained while the wine range, food, design and events programme were adapted to individual neighbourhoods.

It announced its latest opening yesterday (11 August) and its second regional location, taking over the former Browns site in Brighton.

Inception Group’s venues are designed around immersive worlds, from the Victorian inspired Mr Fogg’s bars filled with period details to Cahoots, which recreates post war London through underground station settings, 1940s styling and live entertainment.

Co-founder Charlie Gilkes told the MA: “With the current climate, customers are going out less often, but when they go out they are looking for value adds, an additional level of immersion above the norm.”

Entertainment ranges from karaoke and live singers to cocktail making and escape room style experiences, while design teams source era specific objects to reinforce individual concepts.

“We have always tried to create venues which feel well considered with strong attention to detail and an emphasis on experience to stand out from our competition.”

BOXPARK has taken a broader approach to experience, using a changing programme of live music, DJs, karaoke, screenings and major cultural and sporting moments alongside its food and drink offer.

Chief executive Matt Snell said the wider mix was central to encouraging customers to stay longer and return.

“Our mix of street food traders, drinks, music, games and entertainment means customers can turn a 90 minute fixture into a full day or night out.”

The operator also uses its venues for screenings beyond sport, including popular television events, alongside live entertainment and programmed events throughout the year.

Snell added: “By combining sport with hospitality and entertainment, we create experiences people want to share and come back to.”

Across the operators, the formats vary, but the commercial logic is very similar. Experience is being built into the proposition as a way to create differentiation, extend visits and give consumers a stronger reason to choose one venue over another.

This article forms part of a five part MA series exploring how pub operators are segmenting their estates around accommodation, community, food, sport and experience.

You can read the accommodation and community features here, with food and sport to follow.