Executive Summary

Public houses (pubs) play a central role in the UK catering and drinks markets, despite a reduction in their total number from 55,000 in 1990, to 48,500 in 1997. With sales of £13.45bn in 1997, they accounted for 43% of the consumer catering market, a bigger share than hotels or restaurants.

Beer is still the main product sold in pubs (worth £8.4bn in 1997), reflecting the historic `tied house' connection between brewer and publican. Both national and regional brewers are still important as pub operators. However, pub food sales have risen steadily to £2bn, accounting for 14.9% of the average pub sales.

Pub catering should not be exaggerated since the demand for going to pubs is more weighted to young people than ever, particularly men under 30. Themed pubs offering televised sport, games and socialising are increasing in number in towns and cities, while rural and suburban pubs are carefully targeting families and bringing back older couples.

Ownership of pubs has fragmented in the 1990s, with national brewers' estates having shrunk to 8,350. Among the numerous new successful `pub companies' with no formal brewing connections are: The Greenalls Group, Enterprise Inns and JD Wetherspoon, while an extraordinary change in 1997 saw Nomura, the Japanese investment bank, taking over ownership of the 2,900-strong Inntrepreneur group.

Short-term prospects are reasonably good for pubs, with buoyant consumer spending likely to be boosted by Millennium celebrations, while the concept-pub investments of the 1990s will start to pay-off in consumer loyalty and profitability. However, the pattern of decline and closure for many small, outdated `community' pubs is likely to continue into the next Millenium.

More Information

  Denotes a required field.