Despite the growing importance of online reviews less than two-thirds of operators are specifically monitoring their performance on key review sites, a new report has claimed.
A survey by Barclays for the second Future Shock report, from the Association of Licensed Multiple Retailers and CGA Peach, also showed that while just under three quarters of businesses surveyed said they talk to customers in their venues, only 62% monitor what customers say about them on social media.
The Barclays research also underlines the importance of online reviews, with 60% of customers saying they trust them. This figure rises to 71% among 18 to 34-year-olds.
Younger people are also more likely to attach importance to online reviews; 29% of those aged 18 to 24 said customer reviews are one of the most important factors when making a leisure decision compared to 18% of those aged 65 and over. Moreover, 29% of 25 to 34 year olds said they look specifically for good reviews to make decisions, compared to 18% across all respondents.
The report, which highlights the key challenges and opportunities for the sector in 2017, also shows that operating costs now account an average of nearly half (47.7%) of turnover for businesses in the sector, with rising property and staff costs an increasing challenge for many of them.
Other key stats revealed in the report include:
• The number of food-led licensed venues in Britain has increased by 13.5% in the five years to September 2016—compared to a 12.4% drop in the number of drink-led venues
• Nearly half (46%) of British consumers say they now eat out at least weekly. A third (33%) say they drink out at least weekly
• Half (52%) of British consumers think the government’s planned sugar tax on soft drinks is a positive change—but only a fifth (19%) are likely to reduce their sugar consumption as a result.
CGA Peach business unit director Jamie Campbell said: “It has not been an easy ride for operators in the eating and drinking out markets in 2016, and CGA Peach’s research shows that any growth is hard won in an intrinsically flat market. And with the seismic shock of Brexit yet to play out in full, and property and staff costs still rising, conditions aren’t likely to get much better in 2017. But as Future Shock shows, there are still plenty of growth opportunities for the leading brands over the coming year. By good use of technology, smart marketing and giving consumers the food, drinks and experiences they want—plus, crucially, some support from government over industry issues—operators can look forward to 2017 with optimism.”
ALMR chief executive Kate Nicholls said: “The National Living Wage, business rates reform, Brexit—there are a lot of issues that eating and drinking out operators will need to stay on top of as we enter 2017, and the ALMR will be campaigning loudly and proudly for the sector within government.
“This latest Future Shock report provides important intelligence for that work, and presents a one-stop-shop for information for everyone interested in the sector. It is a balanced and honest health check—a digest of some of the challenges we all face but also of the many reasons we have to be proud of our creative and economically important work.”
