Nick Mackenzie, CEO of Greene King, which operates 2,700 pubs and breweries in the UK, stated that competition from coffee shops and food delivery services poses challenges for traditional pubs. As an increasing portion of the population opts for non-alcoholic beverages, Mackenzie noted that cafes are vying for the leisure time of potential pub-goers. He indicated that over 14,000 cafes now exist in the UK, while pubs still outnumber them at over 40,000.
Mackenzie emphasized that pubs have a unique role in the community that extends beyond alcohol sales. He raised the question of whether pubs can attract younger patrons when approximately a third of individuals under 25 and 20% of the overall population do not consume alcohol. He mentioned the availability of no-alcohol beer options as a means to invite non-drinkers to socialize in pubs. Nevertheless, sales of low-and-no alcohol options remain a minor segment of total sales.
He pointed out that Greene King has adapted to market changes by improving its coffee offerings and creating inviting atmospheres within its venues. There has been a noticeable shift in the industry toward food-oriented pubs rather than those reliant purely on alcohol sales. This shift has been reflected in data showing an increase in kitchen-focused roles compared to bar staff since 2014.
Moreover, the emergence of establishments centered around “competitive socializing,” such as bars featuring games like crazy golf or axe-throwing, has doubled since before the pandemic. Greene King is exploring similar expansions in some of its pubs to attract customers seeking varied entertainment experiences.
In a discussion on the upcoming Budget address by Chancellor Rachel Reeves, Mackenzie expressed hopes for stability and the fulfillment of government promises, particularly regarding the reform of business rates, which have been a significant burden on the hospitality sector. The government has acknowledged the importance of hospitality businesses to local communities and is expected to introduce changes related to business rates by the end of the year.
Source: https://www.bbc.com/news/articles/cd9kd14pgzgo?at_medium=RSS&at_campaign=rss