The emergence of the part-time pub

It seems it’s not just Gordon Ramsay who has curtailed trading hours. The high-profile chef, who is believed to have trimmed the opening hours a couple of his eateries, finds himself in the company of a growing band of pub licensees, all trying to cut costs and weather the storm. According to research by CGA, in addition to pub closure rates moving up to 39 per week, a significant number of pubs are closing for parts of the week, especially midweek. It found that 9% of venues that used to trade on a Monday were now closed, 9% that used to open on a Tuesday were now closed and 8.5% of venues that were open on Wednesday had closed. After decades spent campaigning for all-day trading, it would appear that parts of the pub sector are re-evaluating when and when not it is profitable to open. The emergence of the part-time pub is one of the many nuances of these times, which are proving incredibly tough for some. While CGA said this was perhaps proof that pubs were behaving more like their nightclub cousins, in picking and choosing their trading sessions, one operator suggested to me that “in a bid to stave off death, licensees were attempting amputation first”. Something is happening in the pub market right now – and it feels Darwinian. If Punch, Enterprise, Marston’s and Greene King are seeing profit per leased pub falls of between 5-12%, what must it be like for those lessees? The rent and beer are taken care of long before an operator banks any profits. At the same time, well-invested, well-run managed pubs and restaurants, with good, value-for-money propositions, are taking market share. This is seen nowhere more strongly than in the performance of JD Wetherspoon and Mitchells & Butlers. A leading industry figure recently suggested to me that what was happening in value-volume managed pubs was, in the round, equivalent to the journey taken by budget airlines in recent years. Easyjet jokes aside, these carriers used to be cheap and nasty, then they became cheap but acceptable (possibly even fun in the case of South West Airlines), now they are cheap and increasingly they are smart. In addition to “sharp trading down”, M&B’s Tim Clarke speaks of a tipping point in volumes between managed and leased pubs given the gulf in retail prices. The consumer has noticed the gap, he says, and they are heading to Wetherspoon. Or Crown Carveries. Price in general has become a big talking point. My view, for what it’s worth, is that I don’t believe selling a pint of beer at 99p is necessarily irresponsible. It’s offering what the consumer is increasingly seeking: a great deal. Leased pub groups can spout forth about ambience, quality, service but that only holds true to a point, especially if you can get all three and a basement bargain-price too at your local managed house. This issue will not go away and, in the evolution of pub-going in the UK, it is extremely challenging for local boozers. The heavy, regular usage of pubs – multiple visits per week – is falling fast, while light usage – once or twice a month – is on the up. To my mind that means a different relationship with the pub: less of a connection with the host, and less of a connection with ‘regulars’. There will always be pubs that work because of local people’s emotional attachment – the friendships they have with the people that work and patronise the pub. But increasingly, sad or not, the pub is becoming less of an integral part of people’s social lives and more a service or experience that people seek out with preordained friends or family. Like retail and other leisure experiences, many people will go where they get the most enjoyment AND the best value for their time and money. Price is a key component of that package, especially right now, in these tough times.