The current pressures on household finances are a real nemesis of the UK’s bars and restaurants. The Easter weekend, May bank holidays and coronation of King Charles III boosted footfall and spending briefly but once the extended weekend has passed, usual ‘cautious’ spending behaviours resumed.

The fact remains, consumers have less disposable income to spend and if they aren’t already absorbing higher energy bills and mortgage costs, they are beginning to budget for their impact.

Research into out-of-home food and drink consumption trends over the last 12 months is showing:

• Despite almost recovering to pre-pandemic levels, out of home consumption continues to be challenged. Consumers are limiting dining out to special occasions or treats.
• The spell of good weather and BBQ season is fuelling increased off trade purchases i.e. supermarkets.
• Low or no alcohol alternatives are up 6% in the last year – alcohol free beer brand Lucky Saint has reported 180% increase in volume over the last 12 months.

Come Dine With Me trend growing stronger

The IWSR, the global benchmark for beverage alcohol data and intelligence, shared their key trends for beer in 2023 back in December. It included that home premise consumption grows even stronger driven by economic concerns. Rather than lose out on dining experiences, consumers are creating the occasion and dining at home.

The perfect storm for hospitality

Bars and restaurants are struggling to cope with lower consumer numbers and rising costs. Food inflation, utility rates, higher wages costs and staff shortages – it’s all adding up. Many publicans are claiming that running a pub ‘now worse than in COVID.’

From 1 August, there is a tax relief of 11p on draught drinks which was announced in the spring budget earlier this year, though this is unlikely to have a huge impact on sales. Sector bodies like the British Beer and Pub Association want to see reformed business rates to reduce the “unfair tax burden” as they see it.

Calling time on the business

Those publicans and restaurant owners who have survived the very rough seas of the last few years are unlikely to be able to pause and draw sighs of relief anytime soon. With many having diversified to accommodate lockdowns and changing consumer trends, now is the right time to take an objective look at the business and preserve the areas which are still viable.

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