Pub and bar sector shows optimism amid economic headwinds

New data from Design My Night has found that 74% of pub and bar operators have expressed optimism about the longevity of their business.

Notably, 36% of operators believe their business is thriving and are highly confident that they will still be trading in 12 months.

The data also found that consumers largely mirror this positive sentiment, with the majority expecting to visit pubs and bars to the same extent as the previous 12 months, and close to a third citing a desire to visit more frequently.

The report reveals that consumers continue to regard visiting the on-trade as an important part of their day-to-day lives, despite pricing remaining a sensitive issue.

The report suggests there is a notable difference between what consumers consider fair and what venues charge for drinks.

Consumers feel the price of a pint of lager to be fair at £5.15, while operators believe an average of £6.12 to be acceptable, signalling disparity between what landlords and customers deem to be good value for money.

The report also highlights opportunities for pubs and bars to diversify their offerings beyond food and drink, by providing in-venue entertainment.

Despite 83% of consumers finding live performances appealing, only 60% of venues hosted them in the past year, while 60% of consumers find ticketed events appealing to consumers, and 66% of venues are already running at least one live event in the past 12 months.

A promising 33% of venues plan to increase the frequency of such events, providing consumers with memorable experiences that increase dwell time and venue spend.

Katie Houghton, head of brand at DesignMyNight said: “Despite very real challenges in the sector, our report uncovers a remarkably positive outlook from operators. Hospitality is a truly resilient sector, driven by people who are incredibly passionate about what they do, and it’s encouraging to see that sentiment remains strong.

“It’s clear that there is an opportunity here for venues to align with evolving consumer desires, particularly in areas like live entertainment and interactive experiences. Hospitality is extremely agile, capable of pivoting to meet these unique needs and expectations, but there is still plenty that can be nurtured and capitalised on.