The world is changing fast for independent operators

As well as suggesting that freetraders are taking a more hands-on approach in overseeing the running of their businesses, our survey reveals a...

As well as suggesting that freetraders are taking a more hands-on approach in overseeing the running of their businesses, our survey reveals a significant number of changes in trading patterns from food offerings to Sky subscriptions

Food

One of the key emerging trends is a 14% drop in the number of freehouses serving food, down in 2005 to 66%. Country pubs are the most likely to sell food, with community pubs the least likely. Not surprisingly, the larger the pub's turnover, the more likely it is to serve food with more than 90% of the largest pubs selling food.

As with 2004, on average 36% of turnover comes from food, although this varies across the sample from as little as 1% to a high of 75%. Indeed, of those giving an answer, 36% say food accounts for up to 25% of turnover, 41% say it accounts for 26% to 50%, and the remaining 23% say 51% to 75%.

Overall, respondents are hoping to see a slight increase in food sales in the next year to 39% of turnover.

Those who say they are expecting an increase think it will rise from an average of 35% of turnover to 41%. The few expecting a fall are saying it will almost halve, from 26% to 15%. Those who say it will remain the same give a figure of 38%.

As in 2004, three food suppliers stand out Booker (26%), Brakes (19%) and 3663 (12%). However there appears to be an increase in the use of local suppliers of all types, especially by country pubs.

Wine

For pubs selling food, wine sales were on average £586 per week, falling to £184 where food was not sold.

Assume these figures are a fair estimate for the week throughout the year, then, on average, wine contributes 8% of a freehouse's total turnover. Wine sales in country pubs contribute double the amount in terms of turnover compared to community or town-centre pubs.

On average pubs sell 10 brands of wine: this number is linked to the overall value of wine sales, with WaverleyTBS emerging as the most common supplier.

An average of 70% (73% in 2004) of wine sales is by the glass. One in six say all their wine is sold by the glass, while 14% say that less than 25% is sold in this format.

The proportion of pubs selling house wines has dipped by 11% in 2005 to 56%.

The proportion saying they do sell house wines varies by pub type, turnover and wine sales: 76% of country pubs, 88% of pubs with a turnover greater than £500,000 and 94% of pubs selling more than £750 worth of wine a week sell house wine. On average, for those selling it, house wine sales account for 64% of all wine sales (compared to 62% in 2004).

Related topics Licensing Law Independent Operators

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