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Pubs & Bars in the UK: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Pubs & Bars Market Research Report | SIC I56.302 | Jun 2017

Drowning their sorrows: Falling per-capita alcohol consumption has weighed on industry revenue

IBISWorld’s Pubs & Bars market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

Report Snapshot
Market Share of Companies
Greene King plc Greene King plc market share
J D Wetherspoon J D Wetherspoon market share
Mitchells & Butlers Mitchells & Butlers market share
Industry Statistics & Market Size
Annual Growth 13-18
Annual Growth 18-23
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Industry Threats & Opportunities
  • Rising industry competition and falling alcohol consumption have negatively affected revenue
  • Alcohol duty increased in March 2017 for the first time in five years
  • Britain’s exit from the European Union could create difficult operating conditions for industry firms
  • ... purchase to read more

Industry Analysis & Industry Trends

Conditions in the Pubs and Bars industry remain challenging. Legislative, social and economic trends have all negatively affected industry revenue and profit performance. Despite a stronger consumer backdrop in recent years, increases in beer duty, declining alcohol consumption and competition from cheap supermarket alcohol have weighed on many operators. Furthermore, industry players have been pinched by the rising prices of beverages and food, higher rent costs and increased business rates. Tenanted publicans that had to purchase beer from a particular operator were hit especially hard when debt-laden pub companies increased rent and beer prices in order to pay off their debts... purchase to read more

Industry Report - Industry Investment Chapter

The level of capital intensity is determined by the ratio of capital investment to labour costs. In 2017-18, the capital-to-labour ratio in the Pubs and Bars industry is expected to be 1:6.89. Wages are estimated to account for 24.1% of revenue in the current year, whereas depreciation costs are expected to absorb just 3.5% of revenue. This means that for every £1.00 they spend on capital, operators are expected to spend £6.89 on wages, which suggests that the industry has a moderate level of capital intensity. As in much of the hospitality sector, the level of capital investment required in the industry is not particularly high because most tasks are carried out by people. Usi.. purchase to read more

Additional Insights for the Pubs & Bars Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pubs & Bars Industry are

  • Highly trained workforce
  • Having a wide and expanding product range
  • Ability to attract local support/patronage
  • IBISWorld analysts also discuss how external factors such as Alcohol consumption per capita and Real household disposable income in the Pubs & Bars industry impact industry performance... purchase to read more


    Industry ProductsRelated Reports

    What is the Pubs & Bars Industry?

    Pubs and bars prepare and serve beverages for consumption on their own premises. The industry includes only individuals and companies that operate pubs. Companies that own but do not operate pubs, such as property companies and pub companies (pubcos), are not covered in this industry.

    Industry Products
    BeerSpirits and spirit-based drinksWineFoodCider
    Industry Activities
    Preparing and serving alcoholic beverages Serving non-alcoholic beverages Preparing and serving food

    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Alcohol consumption per capita
  • Real household disposable income
  • National minimum wage
  • National unemployment rate
  • Consumer confidence index
  • Current Performance
  • Mixed conditions
  • Crafting a response
  • Regulation requirements
  • Beer ties
  • Chart: Revenue Growth
  • Industry Outlook
  • The EU referendum
  • Managing competition
  • Food for thought
  • Table: Pubs & Bars Industry Revenue Outlook
  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Pubs & Bars Industry Lifecycle vs The Economy
  • Products & Markets
    Supply Chains
  • Key Buying Industries
  • Consumers
  • Key Selling Industries
  • Alcoholic Beverage Wholesaling
  • Coffee, Tea & Spices Wholesaling
  • Fruit & Vegetable Wholesaling
  • Juice, Mineral Water & Soft Drink Wholesaling
  • Meat Wholesaling
  • Products & Services
  • Beer
  • Food
  • Spirits and spirit-based drinks
  • Wine
  • Other
  • Cider
  • Chart: Pubs & Bars Industry Products and Services Segmentation
  • Demand Determinants
    Major Markets
  • People aged between 26 and 35
  • People aged between 36 and 55
  • People aged over 55
  • People aged between 18 and 25
  • Chart: Major Market Segmentation for the Pubs & Bars Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Pubs & Bars
  • Basis of Competition
  • Internal competition
  • External competition
  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pubs & Bars Industry
  • Industry Globalization
    Major Companies
    JD Wetherspoon plc
    Mitchells & Butlers plc
    Greene King plc
  • Table: JD Wetherspoon plc - financial performance
  • Table: Mitchells & Butlers plc - financial performance
  • Table: Greene King plc - financial performance
  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Pubs & Bars Industry
  • Chart: Tools of the Trade: Growth Strategies for Success
  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth
  • Regulation & Policy
    Industry Assistance
    Key Statistics
  • Table: Industry Data for the Pubs & Bars Industry
  • Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Jargon & Glossary
    Beer Tie
  • A lease under which the lessee is obliged to buy beer from a brewer or pub company. Lessees often receive discounted rent in return.
  • Managed Houses
  • Pubs managed by a pub company, brewer or property company. They are managed by a salaried manager and staff.
  • Off-Trade
  • The sale of alcohol to be consumed off the premises, such as from a supermarket or off-licence.
  • On-Trade
  • The sale of alcohol to be consumed on the premises.
  • Pubco
  • A pubco is a large property company that owns the freehold on pubs, which are then leased or tenanted out to lessees and tenants.
  • Tenanted And Leased Pubs
  • Pubs that are run by tenants and lessees who pay rent to a brewer or pub company. Some obligations to purchase beer or other products may apply, but these are otherwise independent small businesses.
  • Wet-Led
  • A pub that derives most of it sales from drink, rather than food.

  • Why Buy this Report?
    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Pubs & Bars:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Pubs & Bars market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Pubs & Bars, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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