The pub industry continues to experience a period of tremendous change, particularly in the corporate landscape and also in the types of pub that are being operated. Originally, this was stimulated by the Beer Orders, which forced large brewers to sell off surplus numbers of pubs. There are now only a handful of major brewers who retain an interest in pub retailing, with most having chosen to divest themselves of their brewing interests and concentrate on retailing instead.

The economics of running a pub have changed in the past five years, with the result that many operators have been disposing of their managed houses because they are not economically viable to run if their takings are below a certain level. This has brought a huge number of smaller outlets onto the market, with the result that several large groups have emerged that specialise in the operation of tenanted and leased estates which require their tenants and leaseholders to buy beer (and often other drinks) exclusively through them.

The industry is still waiting for the deregulation of licensing laws, which the government failed to introduce following its re-election. In addition, it has become apparent that the government is planning to transfer responsibility for licensing from magistrates to local authorities. There is a widespread belief among operators that this will cause chaos as individual and local political considerations upset the nationwide expansion plans of operators, leading to lengthy and costly delays while appeals are heard.

However, industry representatives are working closely with the government, to ensure that these concerns are addressed, and it remains to be seen whether the details of the Bill will allay these fears.

This report assesses the current health of the pubs industry, focusing primarily on traditional pubs and pub restaurants rather than the newer generation of bars, late-night clubs/bars and café-bars, which have been covered in other Mintel reports. Mintel last reported on this subject in Pub Visiting, Leisure Intelligence - UK Report, August 2000. Other reports of relevance include:

- Multi-Leisure Parks, Leisure Intelligence - UK Report, June 2002

- Gaming Machines, Leisure Intelligence - UK Report, March 2002

- Leisure - In vs Out of Town, Leisure Intelligence - UK Report, March 2002

- High Street Pubs/Bars, Leisure Intelligence - UK Report, February 2002

- Children's Parties, Leisure Intelligence - UK Report, January 2002

- Children's Play Areas, Leisure Intelligence - UK Report, January 2002

- Student Leisure, Leisure Intelligence - UK Report, September 2001

- Late Licensing, Leisure Intelligence - UK Report, July 2001

- Independent Pubs and Bars, Leisure Intelligence - UK Report, June 2001

- Budget Hotels, Leisure Intelligence - UK Report, April 2001

- Live Entertainment, Leisure Intelligence - UK Report, April 2001

- Themed Pubs and Bars, Leisure Intelligence - UK Report, April 2001

- Nightclubs and Discotheques, Leisure Intelligence - UK Report, November 2000

and the forthcoming:

- Pub Catering, Leisure Intelligence - UK Report, July 2002

- Nightclubs and Discotheques, Leisure Intelligence - UK Report, November 2002.