Cafes, pubs, and bars hit by AI search rollout, finds data

Recent data shows that UK website traffic growth has experienced a dramatic 86% drop since the introduction of Google’s AI-powered search.

The Google AI Search Shift Report, by digital marketing and PR agency Tank, analysed data from 800 firms across 16 sectors. It compared website traffic growth before and after Google AI Overviews (AIO) and AI Mode to identify which industries are most and least affected.

For online businesses, particularly in ecommerce, a decline in website traffic can have a devastating impact on sales and overall business growth.

Interestingly, among the sectors most affected, the hospitality industry stood out, demonstrating that the effects of AI-driven search aren’t limited to online businesses; local service sectors are feeling the impact as well.

What the data reveals about AI search’s impact

The report showed an overall traffic collapse, with growth falling from 26.3% to 3.7% YoY since the launch of AIO.

AIO now answers user queries directly on Google’s homepage, offering an aggregated response of the results. While it’s far more user-friendly, answering questions in seconds, it’s not as60% of searches now end without a click.

AIO now answers user queries directly on Google’s homepage, providing an aggregated summary of results. It’s faster and more user-friendly, giving users what they need in seconds, but it’s also driving the rise of so-called “zero-click searches.” These occur when users find answers without ever clicking through to a business’s website.

In effect, Google is drawing on publishers’ content to enhance its own service while diverting traffic away from the very sites it sources from, a move that’s sparked controversy among businesses that depend on web visits for sales and growth.

According to the report, the hospitality sector is the hardest hit, with overall website traffic growth slowing at a rate of 54.7% YoY.

Fashion and travel have also been majorly affected by the rise of AIO, while IT has remained relatively stable, with only a 0.6% difference in growth YoY.

Across all industries, websites have 11.1% fewer ranking pages after the launch of AI search. Whereas the previous year saw ranking pages increase by 13.4% on average. This indicates that websites also have fewer opportunities to appear in search results altogether.

What it means for businesses

While fewer clicks mean lower discovery for businesses that want to attract new customers via Google, there is an upside. AIO can help qualify purchase-ready leads.

Martin Harris, head of digital at Tank, commented, “[AI search is] great for the user who can now find what they need more quickly, but it could spell trouble for businesses who rely on ranking pages for traffic, clicks and conversions.”

“There is a silver lining: while fewer users are landing on websites overall, those that do are likely to be more interested in your business and product – and therefore, more ready to buy.”

To bounce back from potential web traffic loss due to AIO, small retailers should respond by auditing products to appear in AI overviews with a GEO strategy.

They can also build trust signals by spreading online coverage across platforms like social media or customer review sites or by scoring media mentions. It’s also a great time to start experimenting with channels such as paid search or social media, to offset traffic dips.

Hospitality feels the sharpest decline

In another blow to an already struggling hospitality sector, cafes, pubs, and bars’ websites have seen the largest decline in organic traffic since AIO. This is in addition to existing stresses, such as post-Budget job losses and exponentially rising costs throughout the industry.

Local search queries, such as “best pub near me”, are easily answered by AI, meaning users no longer need to trawl through search results to find the answers they’re looking for.

While it’s great for pubgoers to find their new favourite haunt, it’s not ideal for small businesses who may see a decline in website visitors.

If you’re an owner of a cafe, pub, or restaurant, make sure to keep your Google Business profile and reviews up to date, and maintain a healthy presence on multiple platforms to mitigate the impact of AIO on new customers discovering you.

AI search isn’t killing visibility entirely, but it’s important to move with the times and adapt your digital strategy to stay in the loop.