The Pubs and Bars Industry Report – The Industry “Appears to be Back on the Path of Recovery”

After a turbulent year induced by the COVID-19 pandemic, consumers are now flooding back to pubs and bars putting the industry back on the road to recovery.

The industry has seen a shift in consumer preferences, with a growing interest in the food experience as well as a rise in staycations both having a significant impact on trading levels, which have now risen to pre-pandemic levels as consumers enjoy their newfound freedoms.

Gerald Edelman’s latest industry report by Nick Wallis, Richard Kleiner and Richard Staunton, partners at Gerald Edelman, provides key insights into this industry sector.

The report includes a full industry overview, a breakdown of market trends including health conscious consumers, premiumization and geographic trends, a breakdown of M&A activity, threats to the industry that are thwarting future growth potential and creating uncertainty, and an overlook of the industry.

Key takeaways from this report include:

  • The release of pent-up demand during the pandemic slump is expected to see industry revenue bounce back, increasing by 130% in 2020-2021.
  • Whilst the government aimed to support the industry via various schemes, inevitably some businesses have struggled through the pandemic as industry revenues fell from £20bn to just £6.3bn.
  • Market trends that are driving the industry include health-conscious consumers, premiumisation and new locations (driven by the increase in staycations).
  • Even in the face of the pandemic, M&A activity in the sector remained active with over 60 deals completed since the start of 2020.
  • Industry operators have reason to be optimistic as a resurgence in trading led by the release of pent-up demand is allowing industry trade to return to pre-pandemic levels.

The report can be downloaded from Gerald Edelman’s website: