There has been no shortage of media coverage of the challenges currently being faced by the eating and drinking out sector. Against a backdrop of extremely mixed performance, pubs are beginning to emerge as the most reliable performer.

Among the managed pub operators that have recently announced their financial results, like-for-like sales growth across the board is considerably higher than the Coffer Peach Business Tracker average* for the wider sector encompassing managed restaurants, bars and pubs. 

For example, Stonegate Pub Company and Brewhouse & Kitchen recently reported like-for-like sales growth of circa 2 per cent and 5.25 per cent respectively.  For ETM this was even greater, with like-for-like sales up 10.8 per cent for the five weeks to 31 December 2017. This compares with a Coffer Peach average of circa 0.2 per cent.

However, it is not only large managed pub operators that are performing well.  Numerous smaller operators, such as Laine Pub Company, are driving innovation in the sector with inventive entertainment concepts – everything from pop-up food offers to mini amusement arcades – and creative offers such as craft beer and microbreweries.

These create the all-important ‘experience’ factor that today’s consumers are seeking. It is clear that people are not only still going out, but increasingly willing to try something new. 

This strong performance is not purely centred on London and the South East. Across the country, there are many successful pockets, including those in the North West and North East. Ultimately, trading fundamentals are still strong in the pub sector as a whole, in turn driving investor appetite. 

The growing gap between the performance of pubs and other sub-sectors of the eating and drinking out industry, combined with the wide availability of freehold property sought by various investor types, will only continue to drive transactional activity. 

*The Coffer Peach Business Tracker is the UK’s managed pub, bar and restaurant sector’s established sales barometer. The Tracker is operated by CGA Peach, in association with The Coffer Group, RSM and UBS.

• This content first appeared in The Morning Advertiser.

Further information

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