Pubs command biggest share of consumer spending in hospitality, study says
Pubs continue to command the biggest share of consumer spend compared with other hospitality sectors, according to new data from research consultancy KAM and the British Institute of Innkeeping (BII).
The Pub Roadmap report found pubs typically make up 29% of consumer spending across the industry, ahead of fast food (16%) and casual dining (5%).
However, the study found there had been a slight migration of consumers away from pubs and restaurants towards fast food, takeaway and coffee and sandwich shops, which it suggested was due to the cost of living crisis.
Despite this change, pubs have seen the number of 'drink-only' visits from customers rise 10% to make up 36% of their business this year.
While the 18–34-year-old age group still makes up the highest share of spend in UK pubs and bars (28%), older age groups are now accounting for a bigger proportion of spend, with 55-64-year-olds making up 18% of pub spend, and the 65+ age group comprising 14%.
Blake Gladman, strategy and insight director at KAM, said the figures suggested "a levelling out of consumer behaviour" and a potential "end to the chaos" operators have experienced over the last few years.
He added: "This more stable customer base should give us confidence that the shape of the market we have now is the shape of the market. Therefore, it represents a point in time from where the industry can use as the platform from which to grow."
The report also offered advice and guidance on how publicans can improve their offer and service and encouraged staff to upsell more premium options.
The findings for the Pub Roadmap came from a survey of 500 adults and was supported by data from Hospitality Data Insights (HDI) which tracks the debit and credit card spend of 10.2m customers across 180,000 hospitality venues, as well as insight from by Brixton Brewery and Brakes.
Image credit: Shutterstock/William Perugini
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