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Industry report: Hospitality – bars and pubs
After a year of turbulence induced by the Covid-19 pandemic, consumers have now flooded back to pubs and bars, putting the industry on the path to recovery.
The loosening of social distancing restrictions has afforded consumers rediscovered freedom, and has recently allowed them to enjoy pubs and bars, favourable weather, the Euros and a Summer of staycations.
In our latest industry report, Gerald Edelman Partners, Richard Kleiner, Richard Staunton and Nick Wallis, zoom in on this turbulent industry, covering pre/mid and now post-pandemic activity and the outlook for the coming years as the sector aims to recover.
Inside, you’ll find a full sector overview, a performance analysis, a breakdown of market trends, and an evaluation of how key factors will drive growth within the sector and continue M&A momentum.
Key takeaways from this report include:
- The release of pent-up demand during the pandemic slump is expected to see industry revenue bounce back, increasing by 130% in 2020-2021.
- Whilst the government aimed to support the industry via various schemes, inevitably some businesses have struggled through the pandemic as industry revenues fell from £20bn to just £6.3 billion.
- Market trends that are driving the industry include health-conscious consumers, premiumisation and new locations (driven by the increase in staycations).
- Even in the face of the pandemic, M&A activity in the sector remained active with over 60 deals completed since the start of 2020.
- Industry operators have reason to be optimistic as a resurgence in trading led by the release of pent-up demand is allowing industry trade to return to pre-pandemic levels.
To download the full sector report, click below:
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