Survey finds more evidence that the pubs market is stabilising
There are more signs that the pubs market is finally stabilising, having suffered badly during the credit crunch and subsequent recession, according to new data from Jones Lang LaSalle Hotels.
In a survey of investors and owners in the sector, the property agents found that 61.4% of respondents were "strongly positive" in the medium term, with 35% of respondents reporting no change in wet sales and only 9% reporting a decrease - in contrast to the previous year's survey when many more were reporting a decrease. The proportion of those who considered themselves strongly positive in the short term stood at 38.7%.
Meanwhile, food sales, where competition is now much stronger from a variety of operators, have seen a decline of up to 14.9%.
Perhaps unsurprisingly, it was public houses in London, the South-east and the Home Counties, where trading was reported to be strongest.
Despite a decline in food sales of up to 14.9% reported in 2011, expectations for 2012 were most positive for food-led businesses, with 29% of respondents identifying country dining and family food-led businesses as areas for growth.
Harry Hawksby, director in the licensed leisure and hotels division at Jones Lang LaSalle Hotels, said: "While conditions remain challenging for the UK public house sector, respondents were far more optimistic about future trading performance than 12 months ago, especially in the medium-term, London and the South-east."
"Respondents' expectations are more positive for food-led businesses, championing it as a key growth area. Sentiment suggests neutral results for those wet-led businesses, moving us towards a more stabilised level of trade in a new ‘normalised' world, albeit at a much lower base level than historically."
"Today's consumers are more focused on value, which typically does not necessitate the need for cheap pricing, but the delivery of good value and a quality experience. At a local level the consumer maintains a proportion of their weekly budget for leisure spend and will not completely forgo the social enjoyment and interaction of visiting their local pub."
"It is not surprising to see the greatest positive sentiment focused on the South-east, which has recently been the centre of a number of high-profile events, although we will not know the full extent that these have on trade until next year's survey and financial reporting."
By Neil Gerrard
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