Pubs outperform restaurants, but must “shout louder” about social value

UK pubs recorded the strongest growth in the hospitality market in February, outperforming restaurant businesses and fast food outlets despite facing significant economic challenges.

But while this comes as good news among the anxieties and uncertainties for pub owners, industry leaders are urging businesses to do more to promote the sector’s social value to communities.

Speaking at the Morning Advertiser’s MA Leaders Club conference, experts say pubs should be “shouting louder” about their social value – from bringing people together to tackling the country’s loneliness epidemic.

Pubs outperform wider eating-out market

Pubs are continuing to show resilience as consumers continue to face tough decisions about where they spend their money, with new research suggesting that the sector is outperforming other parts of the eating-out market.

According to data by Barclays, consumer spending for eating and drinking out increased by 2.4% in February – up from 1% the previous month.

The data also found that pubs, bars and clubs outperformed the wider market, with spending rising by 3.3% – compared to 2.9% for restaurants and cafes.

This rise is modest yet remains good news for pub businesses across the country, who will now be looking ahead to the Government’s April support package, which is slated to include a 15% cut to business rates.

“February’s data highlights the careful balancing act consumers face in navigating rising costs amidst global uncertainty,” Karen Jonson, Head of Retail at Barclays, told The Morning Advertiser.

“While we’re seeing a continued appetite to spend on categories such as entertainment and wellness – obtaining value for money and savvy spending will remain a strong focus in the months ahead.”

Industry leaders warn pubs must “shout louder” about social value

While these figures show the sector’s commercial resilience, industry leaders say the importance of pubs goes beyond sales figures. 

Panellists at the MA Leaders Club Conference in London last week said that pubs play a vital role in tackling loneliness, supporting grassroots sport and offering social infrastructure across the country.

The panel included Gemma Finnegan, the Impact and Research Lead at Cornwall Rural Community Charity.

“Social value is about measuring the broader impact a venue has,” she said. “It looks at economic and social outcomes and asks what real change that activity creates for people and communities.”

Meanwhile, Jon Dale – Strategic Corporate Affairs, Communications & ESG Leader at Punch Pubs & Co – described pubs as the “invisible glue that holds communities together”.

“It’s not enough to say ‘it’s just what we do,” he added. “We need to shout it from the rooftops.”

Previous research reported by The Morning Advertiser found that every £1 invested in pub services and activities creates around £8.28 in social value.

Why social value matters for the sector

Despite lockdown restrictions long coming to an end, loneliness has remained a persistent issue in the UK, and pubs have become important spaces for bringing people together.

According to recent data reported by Hand Crafted Drinks Magazine, there is a significant rise in loneliness in areas where pubs close, which facilitates the same kind of isolation many experienced during the peak of the COVID-19 pandemic.

It was reported that 67% of Brits see pubs as essential for tackling loneliness and isolation, while 30% say they or someone they know has experienced increased loneliness as a result of losing their local pub. Additionally, 72% consider the pub important to social life in their local community.

Philip Howell, Professor of Historical and Cultural Geography at the University of Cambridge, told Hand Crafted Drinks Magazine: “When pubs are ripped out of communities and neighbourhoods, the damage to social cohesion is incalculable. 

“With rapidly rising levels of loneliness, we need pubs more than ever. The cost of standing by and watching pubs close will be measured in even greater isolation and the fracturing of our communities.”

The tangible social benefits pubs provide are perhaps seen best in the Empty Chairs campaign, during which hosts reserve tables in pubs and invite anyone who wants company to sit and join the conversation. 

It has proved to be a massive success in the UK and has even inspired meet-ups across the United States, Canada, Belgium, Norway, Switzerland, and Australia.

This is precisely why industry leaders want the incredible – often unsung – social value of pubs to be put front and centre of their pitch to customers. While the establishments themselves can’t put more money directly into punters’ pockets, they can encourage them to spend what they have in places that actually make a difference to people in their community. 

366 pubs were demolished or converted across England and Wales last year, and as they continue to battle rising costs, their presence in local communities remains increasingly fragile. So, ensuring those communities know exactly what positives these establishments bring to the table is no longer optional. 

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Planet of the Grapes founder Matt Harris has over 25 years of experience in hospitality. Read his bi-monthly column for Startups now.

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