Gerald Edelman release their latest industry report

Pubs and bars adapting services in the face of tough operating conditions

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 pandemic. 

Industry revenues grew to £15.4 billion in the year to August 2022; an increase of 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.

Despite this, progress is expected to be offset by changes in work and lifestyle habits, such as the prevalence of working from home, and rising costs are likely to further squeeze industry margins. The impact of the anticipated recession is also a key factor that has not been modelled into the forecasts for the sector.

Key takeaways from our report include:

  • • Consumer tastes and preferences are evolving, shifting towards healthier options, such as zero alcohol, and ‘premium’ options, such as craft beers. With the average craft beer costing 20% more than a standard pint of beer in the UK, this is expected to be a highly lucrative trend for operators that diversify their menus to include these options.
  • • M&A activity in the pubs and bars industry has returned to pre-pandemic levels in 2022, following a record-setting number of deals in 2021.
  • • JD Wetherspoon plc is the largest industry player, maintaining an 8.9% market share.
  • • Demand from takeaway and fast-food restaurants is expected to grow in 2022-23, 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 2027-28, reaching £22.3 billion.

The report can be downloaded from Gerald Edelman’s website:

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