Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Food sales driving growth
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- Figure 1: Best- and worst-case forecast for pub catering market, 2011-21
- Key players
- Mitchells & Butlers
- Young’s
- JD Wetherspoon
- The consumer
- More people eat than drink in pubs
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- Figure 2: Frequency of visiting pubs/bars/nightclubs to eat and drink in, March 2017
- Favourite pub dishes
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- Figure 3: Most voted favourite dishes (any rank), March 2017
- Budgets for pub meals
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- Figure 4: Budget for pub/bar meals, by occasions, March 2017
- Diners are driven to deals
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- Figure 5: Interest in products and services, March 2017
- Pub diners are health-conscious
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- Figure 6: Menu deterrents, March 2017
- Diners are slow to accept digital loyalty schemes
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- Figure 7: Attitudes towards pubs/bars, March 2017
- What we think
Issues and Insights
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- Premiumise the offers to boost sales
- The facts
- The implications
- Digital ordering is becoming mainstream
- The facts
- The implications
The Market – What You Need to Know
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- Pub operators face rising costs in 2017
- Consumer crutch holding up pub sector
- Total pub sector benefits from strength of catering segment
Market Size and Forecast
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- Pub sector benefits from strength of food offerings
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- Figure 8: UK pub catering industry market size and forecast, 2011-21
- Pub catering segment continues to grow…
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- Figure 9: Best- and worst-case forecast for pub catering market, 2011-21
- …but increasing costs mean pubs need to grow sales to stand still
- Forecast methodology
Market Drivers
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- Brexit uncertainty for pubs sector
- Confidence holding up but income squeeze on the way
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- Figure 10: Trends in how respondents would describe their financial situation, February 2009-February 2017
- Rising costs for pub operators in 2017
- National Living Wage and National Minimum Wage
- Apprenticeship levy comes into force in April 2017
- Revaluation of business rates
- Alcohol excise duties increase by RPI inflation
- Rising inflation puts further pressure on pubs
- New Pubs Code for tied leased and tenancy agreements
- Soft drinks levy coming in 2018
- New alcohol guidelines and cutting back on alcohol
- Pubs have less appeal to ageing population
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- Figure 11: Trends in the age structure of the UK population, 2011-21
- Quality of food offer becoming more important
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- Figure 12: Pub/bar visitors’ behaviours, January 2016-February 2017
Key Players – What You Need to Know
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- Mitchells & Butlers pushes into casual dining sector
- Marston’s becomes more food-focused
- Independent food operators trading inside pubs
- Opportunities in home delivery
- Mobile apps are mainstreaming
- Wetherspoon is perceived as good value
- Toby Carvery has strong image among parents of under-16s
Companies and Brands
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- Mitchells & Butlers pushes into casual dining sector
- Stonehouse Pizza & Carvery
- Miller & Carter
- Chicken Society
- Lunch and Supper Counter
- Son of Steak
- Harvester launches vegetarian and vegan menu
- Greene King rebrands Eating Inn
- Hungry Horse increases menu prices
- Marston’s opens more pub restaurants
- Revere Pub Company
- Marston's Pizza Kitchen
- Brasserie Bar Co. saw turnover increase 10.2%
- Slug and Lettuce expands presence in the South and targets women
- EiG invests in independent pubs
- Punch Tavern grows Village Pub & Kitchen
- Browns Brasserie & Bar gains gluten-free accreditation
- Joseph Holt secures £25 million refinancing
Brand Research
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- Brand map
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- Figure 13: Attitudes towards and usage of selected brands, March 2017
- Key brand metrics
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- Figure 14: Key metrics for selected brands, March 2017
- Brand attitudes: Wetherspoon is the brand most widely available
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- Figure 15: Attitudes, by brand, March 2017
- Brand personality – Macro: Brewers Fayre stands on par with Beefeater Grill as tired and boring
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- Figure 16: Brand personality – Macro image, March 2017
- Brand personality – Micro: Toby Carvery takes the lead on traditional and authentic; Harvester has the strongest family and healthy image
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- Figure 17: Brand personality – Micro image, March 2017
- Brand analysis
- Wetherspoon is a trusted brand with a good reputation
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- Figure 18: User profile of JD Wetherspoon, March 2017
- Toby Carvery is both authentic and traditional
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- Figure 19: User profile of Toby Carvery, March 2017
- Sizzling Pubs is fun, vibrant and exciting
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- Figure 20: User profile of Sizzling Pubs, March 2017
- Harvester is the most caring brand
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- Figure 21: User profile of Harvester, March 2017
- Brewers Fayre is seen as boring and tired
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- Figure 22: User profile of Brewers Fayre, March 2017
- Only 3% see Beefeater Grill as favourite brand
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- Figure 23: User profile of Beefeater Grill, March 2017
Launch Activity and Innovation
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- Opportunity for food operators to trade inside pub premises
- Barrel & Stone stretches its pizza brand
- Tootoomoo plans to roll pan-Asian tapas into pubs
- Just Eat delivers to Punch Tavern pubs
- Antic London trials noodle bar concept
- Using beer as a food ingredient to create standout dishes
- Additional revenue stream from gift card schemes
- Opportunities in home delivery
- Displaying calorie counts allows customers to make informed choices
- IT solutions help pubs keep up with technology
- Corporate companies are pre-booking bars for events
- Pubs are rolling out mobile apps
- Young’s On Tap
- Wetherspoon’s Order and Pay
- Restaurant-with-rooms concept gains traction
- Free food with drinks
The Consumer – What You Need to Know
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- More people eat than drink in pubs
- Favourite pub dishes
- Spending caps on day and evening meals
- Diners are driven to deals
- Young diners are interested in lunchtime takeaway options
- Diners are health-conscious
- Interest in technology, but slow to accept digital loyalty schemes
- Pubs are an information-driven business
Frequency of Visits
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- More people eat than drink in pubs
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- Figure 24: Frequency of visiting pubs/bars/nightclubs to eat and drink in, March 2017
- People prefer to eat at pubs during the day
- Parents of under-5s
- Women more likely to eat at pubs throughout their lives
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- Figure 25: Any eaters at pubs/bars^, by age and gender, March 2017
- Catering to all socio-economic groups
Favourite Pub Dishes
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- Roast dinner and fish & chips are the most popular pub dishes…
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- Figure 26: Most voted favourite dishes (any rank), March 2017
- …and people like them more as they get older
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- Figure 27: Two of the most voted favourite dishes (any rank), by age and gender, March 2017
- Burgers attract the young customers…
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- Figure 28: Burgers as most popular dishes (any rank), by age and gender, March 2017
- …but grilled steaks appeal to all
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- Figure 29: Grilled steak as a most voted favourite dish (any rank), by age and gender, March 2017
Spending Caps on Various Occasions
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- Daytime
- Most people are prepared to spend less than £10 on daytime meals
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- Figure 30: Budget for pub/bar meals, by occasions, March 2017
- Evening
- Most people are willing to spend up to £14.99 for dinner
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- Figure 31: Dinner budget, March 2017
Interest in Pub Features
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- People want a lot of menu options
- Most people are drawn to set menus
- Meal promotions appeal to younger diners
- Daily specials can be profitable
- Diners are interested in grazing
- People enjoy creating their own dishes
- Young customers want to takeaway lunch
- Pubs need to use the best ingredients
- Under-45s will use cashless payment apps
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- Figure 32: Interest in products and services, March 2017
Menu Deterrents
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- Diners are health-conscious
- Diners prefer freshly made meals
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- Figure 33: Menu deterrents, March 2017
Attitudes towards Pubs/Bars
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- Everyday low prices are better than loyalty programmes…
- …but interest in online booking can increase loyalty
- Most people pay attention to online reviews…
- …while social media attracts younger punters
- There is demand for pubs to act more like restaurants
- People want all-day dining options…
- …but weekday deals are just as effective
- Women want healthy pub options
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- Figure 34: Attitudes towards pubs/bars, March 2017
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
Appendix – Market Size and Forecast
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- Figure 35: UK pub industry market size and forecast, 2011-21
- Figure 36: Best- and worst-case forecast of total UK pub catering sales, 2016-21
- Forecast Methodology
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