Pubs suffer as consumers switch to takeaways
8 December, 2008
Cash-strapped customers take home a Chinese
Mid-market pubs are losing trade to the takeaway market, according to the latest analysis of eating out trends.
However, at the top end of the market, destination food pubs are benefiting from a sales growth spurt.
The QuickBite survey, which tracks sales across the pub and restaurant market, shows that pubs have lost significant sales across the past year in 'value' sector – defined as spend between £5 and £11 a meal.
The main beneficiary has been the takeaway sector, dominated by Chinese and Indian meals.
The survey estimates that across the 12 months to September, Chinese meals became the most popular out-of home meal, growing in market value to £5bn and pushing pubs off the top of the table.
David Humphreys, director of FMCG, which publishes the QuickBite survey, said: “Some of this growth has been at the expense of the pub with some consumers switching from pub meals to takeaways.”
Independent pubs have also come under pressure from the large number of 'two for one' and similar discount deals being offered by branded restaurant chains – including managed pub groups such as Spirit and Whitbread.
“The greatest contributor to pubs' decline has been the sharp loss of C2s - typically skilled manual workers - and a substantial fall-off in the 55-64 age group,” said Humphreys.
FMCG estimates that over the year to September, the foodservice market has declined by 13 per cent to £29.3bn.
However, upmarket pubs have benefited from double digit sales growth in the 'premium casual' segment, where average spend is between £17 and £23 a meal. This includes gastro pubs, destination country inns, as well as speciality restaurants such as the Greene King owned Loch Fyne chain.
Humphreys said: ”Analysis of our data suggests that this growth has been achieved by mainstream casual consumers trading up whilst eating out less often.”
- Confirmation that branded pub operators are fighting hard for share of the value market has come from Whitbread. The owner of the Beefeater and Brewer's Fayre brands said a strong performance it is pubs over the 39 weeks to November 27 was "driven by value for money offers". Covers were up 9.8 per cent and like-for-like sales up 5.9 per cent.
Readers' comments
Anybody who is surprised by this story should not be in the business. Pubs selling food have had a short term gain where they tried to counter the effects of the Smoking Ban by increasing food sales. Pubs offering good value food have deservedly done well over the last eighteen months. But we are now in a very difficult situation due to the Recession. People without money cannot spend anything. People with money are being cautious. They are spending their money in the pre Christmas sales but are already thinking about how bad 2009 will be. The Smoling Ban, increase in beer duty, cheap supermarket sales, greedy PubCos desperate to survive and last of all the Credit Crunch (now Recession) are all working against the pub market. If 2009 is as bad as most people are predicting, the estimated 2500 pub closures next year will be optimistic. There needs to be a concerted effort from all sectors in the brewing trade to change the mindset of this Government and, for what they are worth, the Opposition. CAMRA and the BBPA have gone part of the way with their current campaign, but have done nothing to attract a significant proprtion of their former customers back to the pub i.e. the smokers. Their blinkered attitude to the Smoking Ban will result in unnecessary pub closures and resulting job losses. The Germans have shown the way, the Dutch are doing the same thing. Why is this once proud country not taking a stand against the over restrictive ban that was imposed on us all? The Labour Party manifesto offered choice. Short sighted politicians and pub trade representatives were too complacent and accepted the blanket ban. I do not want the Smoking Ban revoked, but I want to see it amended to permit indoor smoking areas or even to give individual pubs the choice of being smoking or none smoking. We are supposed to be living in a Democracy. When will the vested interests realise that their interests will actually be better served by amending the ban. A closed non-smoking pub is no use to anybody, but is fast becoming one of the legacies of the fist decade of this century. Few publicans are recssion proof and many that think they are could be in for a very nasty surprise
suppermarkets are killing pub traid.bing drinking ect.we the publicans get the blame.come on be fair.every day in the papers knock down prices.i find it very painfull when we the publicans can't compeat.
The solution would appear obvious, offer customers in your pub the takeaway option!