The Future of Food in Pubs & Bars
3rd February 2025
Currently, there’s around 32,000 pubs operating in the UK – a drastic decline from the 60,800 in 2000. While this reduction is likely due to a range of factors, including increasing economic challenges, changes in business rates, and an evolution in consumer habits, it highlights the vulnerability of the sector with closures continuing to threaten its future.
That said, a recent Mintel report revealed that 84% of adults dined at a pub or bar in the past year, signalling a clear shift toward gastropub culture. What’s more, with a projected 5% year-on-year growth, the industry demonstrates impressive resilience and the potential for substantial success.
As we look ahead to a prosperous 2025, let’s tuck into the key findings of this report, outlining what pub owners need to know to get a slice of this exciting opportunity.
Business Rates
In the 2024 Autumn Budget, the UK Government announced the end of business rates relief. This marks a significant challenge industry-wide but is set to be especially detrimental for smaller establishments working to tight profit margins month-by-month.
From April 2025, pubs and bars will now face potentially unsustainable costs, meaning it’s crucial to introduce a competitive edge and innovative strategies to attract customers, maintain profitability, and avoid widespread closures.
Health-Conscious Consumers
While not a new trend, catering for health-conscious consumers remains a key focus for the year ahead – and beyond! Pub owners can satisfy tastebuds with low and non-alcoholic beverages, but there’s also a growing desire for complementary nutritious food options that not only taste great but that do good too.
By evolving your menu based on customer feedback and emerging trends, you’ll attract a broader, more diverse audience – who will likely return time and again…
More is More
Affordability certainly plays a role in consumers’ decision-making, but the report reveals that dining out is often perceived as a treat or a way to celebrate special occasions. As a result, people are willing to spend a little extra on higher quality and a better overall experience.
In fact, many pub-goers are choosing venues based on the standard of the food offering – whether it’s the highest quality ingredients, the widest menu selection, or the added value of loyalty programmes, premium menus and exclusive offers.
Building a reputation for delivering on these factors (and effectively communicating it to potential customers) is key for increasing footfall and, ultimately, boosting revenue.
Enhanced Experience
Although research shows a slight decline in pub visits since 2023, there’s still huge revenue potential. The key? Giving customers a reason to walk through the door. And while quality is important, the overall experience is just as crucial.
Take the UEFA Euro 2024, for example: an additional £1 billion in revenue was generated by the hospitality industry, proving that pubs were able to cash in on the football frenzy.
But it’s not just attracting fans of live sports. It’s about understanding and catering to the habits of your customers. Whether it’s advertising lunch deals or discounts for older diners to enhance midday traffic, or creating welcoming spaces for business meetings and remote workers – there are a whole host of exciting opportunities that you can introduce to enhance your pub’s appeal.
Ready to serve your customers something fresh and exciting? At Kara, we specialise in crafting menus that boast both innovation and high quality – get in touch with us today to take your food offering to the next level.
