The old grey matter

The creation of trendy, buzzing, themed pubs has been the fixation of most breweries and pub companies during the 1990s - places, usually in towns or cities, that act as magnets to young people.

At the other end of the spectrum there has also been some development of family pubs, often in rural areas or on the outskirts of towns, with large play areas for children and a ready supply of high-chairs.

But what of the adult population that doesn't want to be surrounded by under-fives or venture into the city to a place full of smoke where the music will be loud?

What about those who want to relax in comfortable surroundings where there is classical music or maybe jazz playing in the background, where they can have a conversation or read the papers and not be bothered by a large-screen television showing football?

This could be parents enjoying a rare weekend without the children. Or a young man wanting to take his girlfriend to a different place from those he frequents with the lads. But it is increasingly likely to be the sector of the population who are now in the third age of life, who have grown-up children, fewer family commitments, and a greater disposable income, those who make up the "grey market".

By 2031, well over half the UK adult population will be aged 45 or older, according to market research company Key Note in its report, The Grey Market in the UK. Those aged between 45 and 64 currently account for almost a third of the country's adult population, and many of these still work and have money to spend on leisure. Their favourite drink is white wine, followed by bitter and whisky, and one of their favourite leisure activities is eating out.

Demand from older people

A 1998 market report on public houses, also by Key Note, asserts that some companies have recognised the demand for pubs that suit the older generation and, in addition to developing brands for the youth market, are turning their attention to this rapidly growing grey market.

Scottish & Newcastle's Chef & Brewer is one such operation. "The population is ageing, people are retiring earlier and living longer, and people eat out more," says Richard Edwards, brand operations director for Scottish & Newcastle. "It's an expanding market and one which still remains to have a number of opportunities recognised. Chef & Brewer sums up everything we think the older generation is after."

The Greyhound at Milton Malsor, Northamptonshire, was the first Chef & Brewer to open, in March 1996. It has a rural setting, real log fires and a deliberately slow pace. The chalk boards offer such dishes as Wexford Stilton peppered mushrooms (£3.25) to start, a main course of stuffed pork fillet Irish-style (£8.95), and chocolate fudge brownie (£2.60). Edwards compares the food more to an à la carte restaurant than that perceived as traditional pub food.

There are currently 35 Chef & Brewer pubs nationwide, with a total of 150 planned by the end of 1999. Sales are split 60:40 in favour of food and Edwards estimates that a quarter of the customers are over 55. Edwards is keen to point out that they all retain an individual character.

"You may visit one not knowing it's a Chef & Brewer because it's just the Dog & Duck or whatever. But after visiting a few you'll notice a consistency. We try to promote Chef & Brewer in a subtle way without in-your-face branding, which the older generation doesn't want."

Market competition

A similar approach has been taken by the Greenalls Group with the development of Ring o' Bells. The first opened in Daresbury, Cheshire, in 1995 and there are now 17 in total, all competing in the same market as Chef & Brewer. The brand currently accounts for around 11% of the company's turnover and a further five sites are planned by the end of the year.

The environment aims to be traditional, comfortable and inviting, with an emphasis on quality. A range of wines are available by the bottle or glass in addition to cask ales, guest beers, draught and bottled lagers, and the food is claimed to be restaurant quality. "It's primarily for older people who are more discerning and have a greater disposable income," says spokeswoman Rita Bawden.

The belief seems to be that what the grey market wants is a return to simple values such as good service, politeness, cleanliness, value for money and to be looked after. "They often feel the world moves too fast and it's good to go somewhere where it slows down," says Edwards.

Julian Hall, general secretary of the Licensed Victuallers Association, agrees: "The demands of the over-50s are not as stringent as those of younger people. They are quite happy to have just a quiet drink and a meal, and many like to have meals in pubs."

Another group keen to capitalise on the growing grey market is Allied Domecq, whose first Golden Oak Inn, the Cock Inn at Wishaw in the West Midlands, opened in September 1997. The aim is to re-establish the tradition of the British pub by offering genuine hospitality, real ales, wines from around the world and good food. "Service is the key at Golden Oak Inns," says Allied Domecq's Sarah Livesley. "We have waitress service at the tables because we believe it's what the older generation prefer."

As with the other groups, each pub retains its name and a degree of individuality and character. The food is described as traditional British with a contemporary twist; the central menu was developed with the help of Daniel Galmiche of Harveys restaurant in Bristol. Starters include pork liver pâté served with onion chutney and rustic bread (£3.25), knuckle of lamb braised with root vegetables, mixed herbs and rustic bread (£6.95), and caramelised pecan and chocolate tart (£2.95). Each pub also has a specials board.

There are now six Golden Oak Inns, each on old heritage pub sites that have been sympathetically restored at a cost of more than £300,000 per site, and Greenalls plans to reach a target of 150 during the next three years.

Discount cards

In addition, Greenalls has just relaunched its Golden Club card where the over-55s can get 20% off the food bill for themselves and up to three guests. The scheme has nearly 25,000 members.

The discount card is a way in which other companies, while not developing a particular brand aimed at the grey market, are actively encouraging the older generation to use their existing venues.

One such scheme is the Emerald Club operated by Beefeater Restaurants for the over-55s. Membership is free and entitles members to order from the specially priced Emerald three-course menu or receive a 25% discount on main menu items on production of a membership card. The cards can be used before 7.30pm Monday to Thursday, or before 6.30pm on Friday and Saturday, but are not valid on Sundays or for any beverage purchases. The scheme has been going for six years and has 1.3 million members.

"The over-55s are a growing sector of the market and that age group has more time for pleasure activities. We are actively recruiting members as this age group includes highly valued guests within Beefeater," says Beefeater spokeswoman Alison Hull.

The needs of this growing market are summed up by Edwards: "It's an easy market to please. It's not rocket science and it's not sexy. It's just about being clean, tidy, efficient and friendly and constantly delivering those standards."