UK Pub And Bar Sector Shows Optimism Amidst Economic Headwinds

A new report analysing the pub and bar sector reveals an optimistic outlook from both operators and consumers, despite ongoing economic challenges.

Published by DesignMyNight, an Access Group company and leading hospitality discovery platform with up to 3.9 million monthly users, the survey-based report indicates a positive sentiment for the future, with 74% of operators expressing optimism about the longevity of their business. Notably, 36% believe their business is thriving and are highly confident that they will still be trading in 12 months.

This comes despite widespread cost pressures and the impact they have had on the industry, including the recent increase in employer National Insurance contributions, rising average wage rates, and a reduction in business rates relief.

Consumers largely mirror this positive sentiment, with the majority expecting to visit pubs and bars to the same extent as the previous 12 months, and close to a third citing a desire to visit more frequently.

Interestingly, the report reveals that consumers continue to regard visiting the on-trade as an important part of their day-to-day lives, despite pricing remaining a sensitive issue. The report suggests there is a notable difference between what consumers consider fair and what venues charge for drinks. For example, consumers feel the price of a pint of lager to be fair at £5.15, while operators believe an average of £6.12 to be acceptable, signalling disparity between what landlords and customers deem to be good value for money.

When it comes to adding value for customers, the report highlights opportunities for pubs and bars to diversify their offerings beyond food and drink, by providing in-venue entertainment. For instance, despite 83% of consumers finding live performances appealing, only 60% of venues hosted them in the past year. The utilisation of ticketed events is a powerful growth strategy, with 60% of consumers finding events appealing, and 66% of venues already running at least one live event in the past 12 months. A promising 33% of venues plan to increase the frequency of such events, providing consumers with memorable experiences that increase dwell time and venue spend.

Additionally, the report highlights the underutilised potential of venue hire as a lucrative revenue stream. A significant 88% of venues are available for hire, and 57% of those currently offering venue hire agree it is more profitable than standard operations.

Diving deeper into the evolving guest experience, the report highlights how important customer experience is and how technology can support and enhance this. While 93% of venues use a digital booking system, there’s a clear gap in more advanced solutions. Consumers are increasingly expecting options like order and pay at table (59% for drinks, 60% for food), which only 27% of venues currently offer for drinks.

Katie Houghton, Head of Brand at DesignMyNight said:
“Despite very real challenges in the sector, our report uncovers a remarkably positive outlook from operators. Hospitality is a truly resilient sector, driven by people who are incredibly passionate about what they do, and it’s encouraging to see that sentiment remains strong.

“It’s clear that there is an opportunity here for venues to align with evolving consumer desires, particularly in areas like live entertainment and interactive experiences. Hospitality is extremely agile, capable of pivoting to meet these unique needs and expectations, but there is still plenty that can be nurtured and capitalised on.

“It’s more important than ever that consumers are being offered value for money, and technology is a key driver in helping businesses deliver this, spotting and managing trends, driving efficiency across all areas, maximising offer visibility, and much more.”

The research has been published in a report that can be downloaded here. The report provides comprehensive insights for pub and bar operators and hospitality industry stakeholders seeking to understand and navigate the evolving landscape of the UK pub and bar sector.