As consumer habits continue to shift post-pandemic and amid the cost-of-living crisis, wet-led pubs have had to “evolve quickly” and adapt into “multi-purpose venues”, which has posed unique challenges for operators, Admiral Taverns CEO Chris Jowsey told the MA.
- Access the Top 100 Pubcos report here
Jowsey added this was particularly true for community wet-led pubs and meant the industry landscape has “changed significantly” over the past five years.
He said: “[These pubs] showed themselves to be extremely resilient and it's fantastic to see this renewed agility has remained.
“Consumer habits are changing all the time, so licensees are used to having to constantly grow and adapt their offering to suit the needs of their customers.”
Continuously evolving
Jowsey further detailed how the industry has also faced “significant macro-economic challenges” in recent years in terms of rising rates and utility as well as the cost-of-living and staff shortages.
Though the CEO explained while rising food costs have hit all pubs, wet-led venues are more “shielded” from this.
Jowsey also made note of a shifting consumer desire to socialise with family and friends nearer to home in an effort to save on spend, bolstering trade for local pubs which may be seen as more reasonable than venues further afield.
“But the sector still faces extremely high tax burdens, including unfair business rates, beer duty and employee national insurance payments, which makes it increasingly difficult for pubs to keep their doors open”, he added.
However, Fuller, Smith & Turner (Fuller’s) marketing director Sam Bourke told the MA food-led pubs have also faced diversification issues amid rising costs. Though Bourke added the segment was still “vibrant”.
“Food-led pubs have continuously evolved over the years, moving from the early days of simple sandwich offerings behind the counter to the rise of the gastropub, to their current role of providing a food experience tailored to each pub’s audience.
Customer-first approach
“Post-pandemic, customers sought ways to reconnect, and food-led pubs became ideal venues for these joyful reunions”, Bourke said.
The marketing director added food sales have outpaced drink sales at Fuller’s.
Though challenges around food inflation, wages and business rates have impacted the food-led market, making knowing your customer base “crucial”, Bourke warned.
Bourke continued: “We have adopted a customer-first approach, identifying our different customer groups and their behaviours in our food-led pubs.
“We then create menus that cater to their preferences, which has been very successful for us.”
- Read more on this and other companies featured in the Top 100 Pubcos report here
