The on-trade in the UK is showing signs of finally recovering from the economic downturn, according to research from Wine Intelligence which suggested drinks sales have slowed despite an upturn in spending intentions.
The Carpe Vinum report shows that customer behaviour has changed to favour informal venues with a focus on quality food and drinks to encourage people to spend again.
“The sales data shows all drinks sales are down over a three–four year period, especially in beer, but on-trade spending intentions are looking positive. So we’re moving off the bottom of the curve, but clearly some way to go before we reach pre-recession numbers,” Richard Halstead, chief operating officer at Wine Intelligence, said.
The report said: “The on-trade has been diminished and is badly in need of innovation. The recession has been instrumental in changing the face of the on-trade, with more young people eating out more frequently and moving the restaurant sector towards informal, “no-frills” environments.
With this rise in casual dining, the report predicts the death of traditional pubs over the next decade as “last century’s world of stand-up beer drinking in poorly lit and scruffy pubs is being pushed further to the margins.”
However it argues that while higher-end establishments in the restaurant sector will remain popular with diners who have been less affected by the recession, restaurants that offer a more varied wine list with good-value options will win the custom of average diners.
