Mintel research
More than half of Brits went to pub in January
More than half of Brits went to pubs for a meal and for drinks (53% and 49% respectively) in January 2016, despite it being a traditionally quiet month for many leisure activities, with consumers often having less money after Christmas or making efforts to improve their health (for example, giving up alcohol).
Pub dining saw a notable decline in visitors of five percentage points while drink-led visitor numbers remained broadly flat when compared with October 2015 — the previous time the tracker was run.
Food
Frequency of food-led visits to pubs also fell against October 2015, with a four percentage point decline in the number of adults who dined in pubs more than once in the one-month period (27% v 31%, see box below).
Among pub visitors, there was minimal change in spend between October 2015 and January 2016 (see box on right). Some 36% of pub diners spent less than £20 on their most recent meal (including drinks), broadly in line with the 34% who did so in the month to October 2015. Meanwhile, 41% spent £20 to £40 and only 18% exceeded £40 in the month to January 2016, the latter being a 21% decline on the October 2015 figure.
Overall spending on food is fairly comparable in pubs and restaurants — the result of many pubs going more upmarket with their food but also due to the casual-dining trend in foodservice. With more than a third of customers seeing pubs as a good place for a special meal, there are clear opportunities for licensees to appeal to consumers who are looking for more premium and fine-dining experiences.
Dining fall
While restaurants saw their share of visitors who spend more than £40 hold up in January 2016 (32%), pub dining spend saw a small drop off, with only 18% of pub diners spending more than £40 compared to 21% in October 2015.
Meanwhile, 37% of pub drinkers spent more than £20 on their most recent pub visit, which shows that there are options for licensees to encourage trading up with more premium drinks. Craft beer can be used to tap into the increasing association between food and beer, something that many restaurant chains are still overlooking.
Dinner with a partner, drinks with friends
Just under half of visitors to both pubs and restaurants do so with their partner. Given ongoing interest in promotions, some special offers for couples on set dishes could be an effective way for venues to stand out in a crowded market.
However, the emphasis differs when it comes to consumers who visit pubs only to drink. Although 38% of people who went to the pub for drinks did so with their partner, a much higher share went to meet up with friends (58%).
Effective footfall drivers
When presented with a list of pub-related activities, pubgoers were most likely to identify high-quality food as the reason for visiting a pub (23%). Despite January being a quiet month for pubs, celebrations such as birthdays continue to provide opportunities to boost footfall, with 19% of pubgoers having a celebratory meal in a pub/bar in the month.
High-quality food options, designated dining areas and a wider range of sparkling wines are possible ways of elevating these special occasion visits. Operators should also consider the efficacy of their websites, with 15% of pubgoers checking a pub’s website, for example, for menu details, before deciding whether to visit.
Meanwhile, 17% of pub visitors used vouchers for meals or drinks in pubs within the month to January 2016. Pubs could use these as a way of boosting usage of social media platforms such as Twitter and Facebook because only 5% of pub-goers follow a pub on social media. Family-oriented special offers could be an effective enticement, although the subject of children in pubs remains divisive.
Parents
Nevertheless, 21% of parents visited a pub with children in January 2016. There is a growing case for replicating the kind of child-oriented provisions, such as toys and colouring books, that the likes of PizzaExpress and Wagamamas have long offered parents, as well as designating times and spaces in which to allow children.
Live sport on TV is another factor that can be divisive, appealing to some consumers but deterring others. Men are significantly more likely than women to have watched live sport at the pub in the month to January 2016 (24% v 9%).
While many licensees deem TV sport subscription packages as essential, these can create intimidating and territorial atmospheres and deter some groups such as women and over-65s.
Key trends
- While real wages are rising for many consumers, confidence remains flat and is, generally, not translating into significantly higher spending. The savvy mentality that came to the fore in the aftermath of the recession is likely to remain, meaning that well-placed promotions will continue to be attractive
- Leisure spending has remained broadly level in January 2016 despite the post-Christmas lull in participation. Food remains a notable opportunity for pubs
- Loyalty cards can be lucrative ways of boosting customer visits
Mintel’s leisure tracker charts consumer activity and spending across the UK leisure industry. For more information on Mintel, visit www.mintel.com or email press@mintel.com.