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Morning Briefing for pub, restaurant and food wervice operators

Fri 2nd Jun 2017 - Pub meal sales increase 14% to reach £7.4bn, outstrips alcohol growth
Pub meal sales increase 14% to reach £7.4bn, outstrips alcohol growth: Pub meal sales are plating up success for the industry having grown 14% between 2012 and 2016 to reach £7.4bn, according to new research by Mintel. In the same period, sales of alcoholic drinks grew by 6%, while soft drink sales rose 7%. In 2016, 23% of consumers said they had visited a pub in the past month because of the high quality of food on offer while in 2017 this had risen to 30%. A total of 69% said one of the most important factors that would make them choose one pub over another is high-quality food, while one in six (16%) said they would go especially to try a new menu. Nine in ten (89%) said they typically visit a pub or bar to eat, compared with eight in ten (79%) who go to drink. Overall, UK pub industry turnover grew by an estimated 8% between 2012 and 2016 to reach £23.5bn. In 2016, alcoholic drinks made up half (50%) of UK pub industry turnover, compared with 31% brought in by catering. More than three in five (63%) are prepared to pay more than £10 for dinner at a pub (excluding drinks), with 18% happy to spend between £15 and £19.99, 10% between £20 and £24.99 and 8% prepared to splash out more than £25. Almost half (45%) said they would be put off ordering a particular dish at a pub or bar that wasn’t freshly made and one in ten (10%) said they wouldn’t like to order a dish that does not fit the image of a pub or bar. More than two thirds (69%) would be interested in seeing pub or bar dishes that are made with premium ingredients. One in five (20%) said grilled steak was their favourite pub dish, followed by roast dinners (19%), burgers (15%) and fish and chips (14%). Meanwhile, two in three (65%) said they would like more pubs to have quiet areas free from music and television. A total of 61% said they still value table service and 75% said it’s important for waiting staff to be able to explain the menu. Mintel senior food and drink analyst Richard Caines said: “Pubs that generate a higher proportion of sales from food and, as a result, attract a wider audience have generally performed more strongly than drink-led pubs. This was reflected in sales of meals through pubs recording stronger growth than alcoholic drinks in 2016. Sales of meals in pubs have benefited from an ongoing move in the pubs market towards more food-led venues and efforts to improve quality and to expand and update menus across price points. The pub catering market has also benefited from an increase in the average spend per visit. The trend towards all-day dining, including the development of breakfasts in pubs, is another contributor to increased sales. Value for money gastro-pubs are currently fuelling the pub sector, but looking to the future there is a growing appetite among pub-goers for more premium offerings.”


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