Industry update: Pubs and bars

The pubs and bars industry enjoyed a year of record growth, following two years hampered by lockdown restrictions and forced closures as a result of the covid 19 pandemic.

Industry revenues grew to £15.4 billion in the year to August 2022; an increase in 134.5% from the year to August 2021. This growth is expected to continue, with revenues forecast to grow by a further 29.6% in the year to August 2023, largely due to the expectation of a full year of trading without lockdown restrictions.

In our latest industry report, Stephen Coleman and Richard Kleiner share the current landscape of the pubs and bars sector, reporting on the structure of the market, recent deal activity and their outlook for the sector in the coming years.

Key takeaways from this report include:

• Market trend – Consumers are becoming increasingly health conscious, leading to the expansion of pub and bar menus to incorporate vegetarian, vegan and gluten free options.
• Market trend – Beer remains the most significant revenue stream in pubs and bars, however, the composition of spending has altered, owing to a shift in consumer preferences towards premium products such as craft beers and premium lagers.
• Notable industry deals include Kings Park Capital’s buyout of The Inn Collection Group in February 2022 and KSL Capital Partners’ buyout of The Pig Hotels in March 2022.
• JD Wetherspoon plc maintains its 8.9% market share making them the largest industry player.
• Demand for takeaway and fast-food restaurants is expected to grow in 2022-2023, fuelled by busier consumer lifestyles, heavier workloads and changes in preferences to favour eating and drinking at home.
• The pubs and bars industry is expected to experience steady growth in the coming years with revenues forecast to grow at a CAGR of 2.2% over the five years through to 2027-2028 reaching £22.3 billion.

Download the full report below: