Pub and bar groups are increasingly looking to diversify or bolster their offering for growth, with the fastest growing businesses including Revolution Bars, Nightcap, and City Pub Group.
Lumina Intelligence insight director Blonnie Whist discussed the importance of diversification at MCA’s Pub Conference earlier this week, pointing to Revolution’s acquisition of Peach, Nightcap’s acquisition of Dirty Martini, and City Pub Group’s increasing of its shares in Mosaic.
She also explored how Heartwood Collection – formerly Brasserie Bar Co – has diversified its format in an effort to target growth in other areas of the market.
Whist further looked at how pubs are driving revenue, particularly by adding through their experiential credentials with initiatives such as garden dining and events to drive mid-week footfall.
Premiumisation also continues to reign as a major trend. Pubs have expanded their offer with high-end brands and inventive drinks to encourage spend as consumers continue to visit for treat occasions.
Moreover, average spend on treat occasions is 21% higher at pubs & bars, coming to £19.73, with pubs driving treat messaging while communicating their food offer.
While pub recovery has been slightly slower than the total eating out market, Whist revealed net outlet closures are expected to end in 2025. Managed sites continue to grow their turnover share of the pub market.
According to Lumina Intelligence, future trends include the growing importance of low and no-alcohol alternatives alongside tighter and more simplified menus.
While operators are already driving drink prices with premium ranges, tequila is poised to lead growth in spirits.
