Pubs & Bars in the UK Industry Market Research Report Now Updated by IBISWorld

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The British pub is an institution under threat. The Pubs & Bars industry has been faced with a difficult trading environment, which began with legislative changes that vastly increased operating costs and culminated in the crippling economic recession in late 2008. Despite the unforgiving climate, operators that have diversified their offerings into areas such as food and accommodation have remained resilient. Over the five years through 2012-13, industry revenue is expected to decline 1.5% per annum. The industry is forecast to generate revenue of £18.4 billion in 2012-13, a decline of 1.0% on the previous year. A key driver in salvaging the industry over the next five years will be the United Kingdom's role in hosting some of the world's largest sporting events, such the Olympic Games in 2012 and the Commonwealth Games in 2014, which will bode well for the entire hospitality sector. Industry consolidation is expected to continue as the major players look to increase their portfolios and expand their presence into regional and community areas. The trend of diversification is also expected to continue, with a focus on added amenities such as accommodation, conference and business facilities, hosting community groups and extended morning hours, which aim to attract a diverse group of consumers for a range of different reasons. IBISWorld forecasts that industry revenue will increase marginally over the next five years to 2017-18. For these reasons, industry research firm IBISWorld has updated its report on the Pubs & Bars industry.

IBISWorld Market Research

IBISWorld Market Research

The industry diversifies services to combat declining revenue

The British pub is an institution under threat. The Pubs & Bars industry has been faced with a difficult trading environment, which began with legislative changes that vastly increased operating costs and culminated in the crippling economic recession in late 2008. The ban on smoking in public places, increased alcohol duties (particularly on beer), food inflation and rising employment costs (due to increases in the minimum wage) proved challenging for industry operators. In addition, the economic downturn caused near-historic levels of unemployment and dramatic falls in consumer spending and confidence. This resulted in unprecedented levels of pub closures, with nearly seven pubs and bars shutting shop every day over 2008-09. Following suit, industry employment declined 3.4% per annum over the past five years, and many of the major players have attempted to consolidate or dispose of their unprofitable operations. According to IBISWorld industry analyst David Stephen, “despite the unforgiving climate, operators that have diversified their offerings into areas such as food and accommodation have remained resilient”. Over the five years through 2012-13, industry revenue is expected to decline 1.5% per annum. The industry is forecast to generate revenue of £18.4 billion in 2012-13, a decline of 1.0% on the previous year.
Increased legislation continues to pose a threat to operators, with beer duty once again the target of reform as the government looks to tackle the social and health problems caused by binge and underage drinking. Stephen adds, “a key driver in salvaging the industry over the next five years will be the United Kingdom's role in hosting some of the world's largest sporting events, such the Olympic Games in 2012 and the Commonwealth Games in 2014, which will bode well for the entire hospitality sector”. Industry consolidation is expected to continue over the next five years as the major players look to increase their portfolios and expand their presence into regional and community areas. The trend of diversification is also expected to continue, with a focus on added amenities such as accommodation, conference and business facilities, hosting community groups and extended morning hours, which aim to attract a diverse group of consumers for a range of different reasons. IBISWorld forecasts that industry revenue will increase marginally over the next five years to 2017-18.
The Pubs & Bars industry is highly fragmented, with a wide range of sizes, styles and formats ranging from small family owned pubs to large branded pubs. In 2012-13, IBISWorld estimates that the top four players will account for about 20% of the industry, indicating a low level of market share concentration. The industry has undergone a series of structural changes over the past decade, with a notable increase in consolidation. Major companies include J D Wetherspoon, Mitchells & Butlers and Enterprise Inns.
For more information on the Pubs & Bars industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

This industry includes establishments that prepare and serve beverages for consumption on the premises, such as bars, public houses, taverns and cocktail lounges. It also includes discotheques licensed to sell alcohol where beverage serving is the predominant activity of the premises. It excludes nightclubs, hotels, restaurants and membership clubs. Also excluded are those establishments that sell beverages for consumption off the premises.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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