Pub Catering - UK

Published by: Mintel International Group Ltd.

Published: Jul. 1, 2008 - 83 Pages

Table of Contents

Issues in the Market

Key issues

Definition

Abbreviations

Market in Brief

Market conditions

The changing face of customers

Changing eating habits

Diversifying

Pubcos and breweries

Internal Market Environment

Key points

Eating out market

Figure 1: The UK market for eating out*, by sector, 2003-07

Pub visiting

Figure 2: Pub/bar visiting for a drink or a meal in the last 12 months, 2003-07

Figure 3: Frequency of visiting pubs/bars for a drink only, 2003-07

Figure 4: Frequency of visiting pubs/bars for a meal, 2003-07

Attitudes towards social drinking

Figure 5: Agreement with selected lifestyle statements regarding drinking, 2003-07

Food for thoughts

Figure 6: Agreement with selected lifestyle statements regarding food, 2003-07

A mixed bag of tastes

Figure 7: Types of restaurants visited in the last three months, 2003-07

Food prices

Beer and alcohol prices

Legislation

Smoking ban

Other red tape

Unfair competition and practices

New opportunities

Figure 8: Frequency of eating breakfast out of the home, March 2007

A very British summer

Broader Market Environment

Key points

Economy in sombre mood

Figure 9: GfK NOP Consumer Confidence Index, 2007 and 2008

Figure 10: Trends in personal disposable income and consumer expenditure, 2003-13

Working hours on the increase

Figure 11: Amount of time spent on occupation on an average working day, 2003-07

The wealthier classes grow in numbers

Figure 12: Forecast adult population trends, by socio-economic group, 2003-13

Golden oldies are growing fastest

Figure 13: Forecast adult population trends, by lifestage, 2003-13

Figure 14: Trends in the age structure of the UK population, by gender, 2003-13

Table for one

Figure 15: UK household sizes, 2003-13

Competitive Context

Key points

Eating out is still a priority

Figure 16: Expenditure priorities, 2007 and 2008

Eating out expenditure is on the increase

Figure 17: Consumer expenditure on selected leisure goods and activities, 2003-07

Figure 18: Forecast of the UK market for eating out, 2003-13

Strengths and Weaknesses in the Market

Strengths

Strength of the eating out market

Casual dining

Population growth and demographic profile

Smoking ban

Changing culture

Weaknesses

Rising (food) costs

Belt tightening

Changing culture

Oversupply and competition

Supermarkets

Market Size and Forecast

Key points

Tougher times ahead

Figure 19: Forecast of the pub catering market, 2003-13

The past

The present

Figure 20: Pub industry statistics, UK, Nov 2007

The future

Factors used in forecast

Outlet Numbers and Market Share

Key points

Calling time

Figure 21: Pub outlets, 2003-08

Figure 22: Top pub operators by turnover 2007 and total outlet numbers, January 2008

Companies and Products

Key points

Major Players

Admiral Taverns Ltd

Figure 23: Admiral Taverns turnover, 2005 and 2006

Enterprise Inns Plc

Figure 24: Admiral Taverns turnover, 2003-07

Greene King Plc

Figure 25: Greene King Plc turnover, 2004-07

Mitchells & Butlers Plc

Figure 26: Mitchells & Butlers turnover, 2003-07

Punch Taverns

Figure 27: Punch Taverns turnover, 2003-07

Other Operators

Geronimo Inns

Figure 28: Geronimo Inns Group Ltd turnover, 2006 and 2007

JD Wetherspoon

Figure 29: JD Wetherspoon Plc turnover, 2003-07

Whitbread Plc

Figure 30: Whitbread (Pub Restaurant) turnover, 2006/07 and 2007/08

Trade Perspective: Changing Consumer Behaviour

Key points

Trade Perspective: The Importance of Food for Pubs

Key points

…but not for everyone

Gastro trends

Supermarket: friend or foe?

Breakfast and coffee mornings

Light bites

Trade Perspective: The Smoking Ban Effect

Key points

Targeting the female market

Drinks on the up

Trade Perspective: Is There a Need for Pubs to Diversify?

Key points

Prospects and barriers to growth

Brand Communication and Promotion

Key points

Figure 44: Advertising expenditure by selected pub operators, by channel, 2007/08

Beefeater Steak Houses Ltd

JD Wetherspoon plc

Harvester Restaurants

Pitcher & Piano

Figure 45: Advertising expenditure, by selected pub operators, 2003-07

Frequency of Eating in a Pub

Key points

Figure 46: Frequency of eating in a pub, 2006 and 2008

Who eats and when?

Appendix: Frequency of Eating in a Pub

Figure 57: Frequency of eating in a pub, by detailed demographics, April 2008

Abstract

The introduction of the smoking ban, spiralling raw material, energy and employment costs, terrible summer weather and the continued erosion of the beer market have piled troubles on pubs in recent years. While these threats continue to erode margins, the greatest concern for industry executives is the prospect of a slowdown in consumer spending.

Pubs are undergoing something of a metamorphosis: the smoking ban has created a change of atmosphere and customer profile with more women, families and older generations now eating and drinking in such establishments. However, customers are less regular and declining in numbers by around 2.5% since 2003. Cheap supermarket prices have led people to drink more at home. Some pubs have not been able to adapt and move with the times and are closing at a rate of 27 a week. Pub food has been the saviour for many and represents an increasing 29% of pub sales; in the last five years this has grown from 23%. Revenue from food is predicted to grow by 3% annually for the next few years.

This report looks at the hypothesis: “Why hasn’t food saved the traditional British pub?” It provides consumer behaviour and attitudinal data towards eating in pubs and what influences their choices, trade comment on what changes are being made to keep up with changing customer needs and insight into the future trends and issues facing the industry.

Key report themes:

• Will consumers continue to spend their stretched incomes on eating out in pubs?
• With rising costs, will pub catering continue to deliver sufficient margins to keep food on the agenda?
• What impact has the smoking ban had on pubs?
• Is there a need for pubs to diversify?
• How have changing consumer trends affected pubs?
• How important is food in terms of pub revenue?

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