11 October 2024

Five Things to Know About the Pub and Bar Market in 2024

The pub and bar industry is seeing some key shifts in 2024, creating both challenges and opportunities for pub owners. At Arla Pro we know that traditional pub trends remain important, and we have identified several new emerging developments to keep an eye on. Here are five essential things to know about the pub market this year, as well as tips and tricks to help your pub take advantage of them.

1. Increasing spend despite fewer visits

Although pub visits are decreasing year-on-year, we have seen consumer spend per visit rise. In 2024, total pub spending hit £12.4bn, reflecting a 9.3% increase from 2023. While fewer people are visiting pubs, those who do are willing to spend more. This means pubs need to focus on spend per head and increasing the value of each visit. Offering good quality food, a welcoming atmosphere, or exclusive experiences tailored to specific age groups will help make each visit more memorable, justifying the higher spend and ensuring customers feel their money is well spent.

2. Independent pubs lead the way

It’s no surprise that independent pubs still dominate, accounting for two-thirds of pub visits in 2024. Despite growing competition from chains, people continue to prefer the personalised experiences that independent pubs can offer. To maintain this appeal, it’s crucial to highlight what makes your pub unique. Whether that’s local food sourcing, community involvement, or a distinctive character, focusing on what sets your pub apart can help retain loyal customers and attract new ones who are looking for something different.

3. Higher spend per head

The average consumer spend per visit has risen to £11.76, up 13.1% year-on-year. With people spending more per visit, there’s an opportunity to justify higher prices for your premium offerings. To take advantage of this, consider upgrading your menu with gourmet dishes, special drinks, or elevated pub classics. Excellent customer service is equally important, as we know consumers are more likely to return and spend if they feel they’re getting good value for money as well as a great experience.

4. Growth in non-traditional day parts

Consumer spending is also increasing during non-traditional hours, particularly in the afternoon and late evening. Pubs are seeing growth in snack sales during these times, presenting an opportunity to expand your menu beyond standard meal times. Consider adding afternoon snack options or late-night bites that appeal to certain age demographics. Promotions like happy hour or afternoon deals can attract people to stop in during quieter times, boosting your revenue during off-peak hours.

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5. Experience-led visits

Consumers are placing greater value on experience-led dining, with 30.4% of dinner occasions now driven by the desire for more than just food. Customers are looking for memorable experiences and are willing to pay more for them. Creating an inviting ambiance, hosting themed nights, or offering live entertainment can help elevate the experience for your guests. By investing in the overall atmosphere and creating unique events, your pub can stand out as a destination pub, encouraging customers to visit more frequently and spend more.

The pub market in 2024 presents new opportunities for pubs to thrive by focusing on premium experiences, non-traditional day parts, and personalised offerings. By adjusting your approach to reflect these trends, you can attract more customers and make every visit count, keeping your pub competitive in an evolving landscape.