High Street Pubs and Bars - UK - July 2008

SUMMARY

Abstract

The high street pubs and bars market is worth almost £3 billion, a modest increase of 1.7% since Mintel last reported in May 2006.

The market leader, JD Wetherspoon, with around 40% of the trade, has enjoyed 10% growth in sales, mainly from its dining. However, these are challenging times, with the credit crunch, demographics, cheap supermarket beer and the smoking ban creating unfavourable pressure on the trade now and into the future.

Mintel last examined the UK market for high street pubs and bars in the UK in May 2006.

Key report themes:

• The importance of food in driving footfall and sales.
• Pressure on discretionary income is proving to be a significant challenge for the future.
• The impact of the smoking ban in public places, introduced in England in 2007.
• The influence of a highly competitive off-trade to on-trade growth.

TABLE OF CONTENTS

Table of Contents

• Issues in the Market
• Key themes
• Definitions
• Market in Brief
• Market grows marginally
• Footfall drops in key C2DE youth
• Adverse factors affecting the market
• Wetherspoon is market leader
• Innovations
• Less discretionary income
• The future
• Internal Market Environment
• Key points
• Smoking ban adversely affects trade
• A mixed picture of home drinking
  • Figure 1: Trends for drinking lifestyle statments, 2003-07
• Supermarkets a threat?
• Binge drinking
• What is it?
• The fallout
• Entertainment
• Pub visiting
  • Figure 2: Pub/bar visiting for a drink or a meal in the last 12 months, 2003-07
• Broader Market Environment
• Key points
• Disposable income and confidence hit
  • Figure 3: GfK NOP Consumer Confidence Index, 2007 and 2008
• The credit crunch
• Pub/bar market overview
  • Figure 4: UK pub* market, key statistics, 2003-08
• Legislation making life difficult
• Other red tape
• Unfair competition and practices
• Student population
  • Figure 5: All students at publicly funded HEIs, 2002/03-2006/07
• Competitive Context
• Key points
• Drinking at home drives growth in off-trade
  • Figure 6: UK volume sales of alcoholic beverages, by distribution channel, 2002-07
• Coffee shops and in-store cafés
  • Figure 7: Market size and forecast of branded coffee shops, 2001-11
• In-store catering
  • Figure 8: The UK in-store eating out market sector, 2001-11
• Threat to daytime trade
• Restaurant market suffers from the crunch
  • Figure 9: The UK restaurant market, at current and constant 2008 prices, 2003-07
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Size and Forecast
• Key points
• Growth in expenditure driven by inflation
  • Figure 10: High street pubs and bars market size trends, 2003-08
• Market rises
• 2007 the year of expansion
• Poor like-for-like sales
• The future
• Forecast
• Footfall entering a period of slow year-on-year decline
• Profits set to fall
  • Figure 11: High street pubs and bars market size trends, 2003-13
• Factors used in the forecast
  • Figure 12: Forecast of home drinking amongst 18+ adults, 2001-13
• Market Segmentation
• Key points
  • Figure 13: Segmentation of the high street pubs and bars market, 2003-08
• Portfolios are rationalised
• Young people still clubbing
• European Brits
• Companies and Brands
• Key points
• Complexities of brand and company ownership
• Leading operators of pubs
• Caution replaces confidence
  • Figure 14: Leading pub operators -- all locations, by total outlet numbers, January 2008
• High street venues and brands
• Wetherspoon is market leader
  • Figure 15: Leading pub operators -- high street, by total outlet numbers, 2008
• Local appeal drives brand success
• Financial performance
  • Figure 16: Leading pub operators -- high street, by turnover and profit, 2006-08
• Mixed fortunes
• The companies
• J D Wetherspoon
• Promotional appeal
• Wetherspoons profile
• Laurel Pub Company (now Bay Restaurants)
• Mitchells and Butlers
• Background
• Different brands
• Spirit
• Alchemy
• Barracuda
• Regent Inns plc
• Luminar
• Brands
• Other companies
• Food and Fuel
• Premium Bars and Restaurants
• Novus Leisure
• Barvest
• Brand Communication and Promotion
• Key points
• Local presence
• Word of mouth
• Promotions
• Official discouragement
• Internet
• The Consumer -- Visiting Pubs/Bars
• Key points
• How many people visit pubs/bars and for what?
  • Figure 17: Trends in visiting pubs/bars, 2003-07
• Food as important as drink
• Daytime visits are up
  • Figure 18: Frequency of visiting pubs/bars for a drink only, 2003-07
• Trade hit by drop in 'once a week or more' evening visitors
  • Figure 19: Frequency of visiting pubs/bars for a meal, 2003-07
• The Consumer -- Branded Chains Visited
• Key points
• Visits to pubs decline
  • Figure 20: Branded chains of high street bars visited, 2003-08
• Wetherspoon the clear leader
• Older, single and less wealthy consumers tend not to visit
• Less than one in four visit at least one pub
  • Figure 21: Repertoire analysis of high street pub/bar brands visited in the past 12 months, April 2008
• Wetherspoon is first choice
  • Figure 22: Repertoire analysis of high street pub/bar brands visited in the past 12 months, April 2008
• Appendix
• Abbreviations
• Appendix: The Consumer -- Branded Chains Visited
  • Figure 26: Branded chains of high street bars visited, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel's Special Groups, working status, household income, tenure, region, ACORN category, media usage, supermarket usage, household size, car ownership, detailed lifestage groups, age/socio-economic group and education level, April 2008
  • Figure 27: Branded chains of high street bars visited, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel's Special Groups, working status, household income, tenure, region, ACORN category, media usage, supermarket usage, household size, car ownership, detailed lifestage groups, age/socio-economic group and education level, April 2008
  • Figure 28: Branded chains of high street bars visited, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel's Special Groups, working status, household income, tenure, region, ACORN category, media usage, supermarket usage, household size, car ownership, detailed lifestage groups, age/socio-economic group and education level, April 2008
  • Figure 29: Repertoire analysis of high street pub/bar brands visited in the past 12 months, by gender, age, socio-economic group, marital status, lifestage, ACORN category, presence of children, Mintel's Special Groups, working status, household income, tenure, region, media usage and supermarket usage, April 2008