LEISURE

OUTLOOK

APRIL 2016
 CONTENTS
00 KEY FINDINGS 03 PUB ACTIVITIES
4 Economic revival will give people the confidence to trade up 17 High quality food can be an effective footfall driver
18 Utilising greater consumer connectivity
18 Figure 4: “Thinking specifically about pubs/bars, which, if any, of the
following have you done within the last month?”

01 PARTICIPATION 19 Children and sport in pubs

IN LEISURE ACTIVITIES
7 Participation rates for many leisure activities holds up in January 04 WHAT IT MEANS
8 Figure 1: “How often have you done the
following leisure activities in the past month?” 21 Confidence stagnates but higher ticket prices should still resonate
8 Who does what?

02 SPENDING AND
COMPANIONS FOR
LEISURE ACTIVITIES
11 Restaurant food holds up better than pub grub for higher spending
12 Drinks spending remains moderate
12 Figure 2: Thinking about the last time you took part in one of these
activities, approximately how much did you personally spend?
14 Figure 3: Thinking about the last time you took part in one of these
activities, who did you do each of these activities with?
15 Dinner with a partner, drinks with friends

Full trend and demographic data is available in the report’s databook.

00
2  LEISURE OUTLOOK LEISURE OUTLOOK  3

21% of parents visited a pub with children

in January 2016. The ever-growing
importance of food to pub revenues
means that landlords are competing as
much against mid-market restaurant
chains as they are against other pubs.

KEY FINDINGS There’s a growing case for replicating the

kind of child-oriented provisions such
as toys and colouring books, as well as
designating specific times and spaces of
the pub in which to allow children.
— Chris Wisson, Senior Drinks Analyst

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4  LEISURE OUTLOOK LEISURE OUTLOOK  5

ECONOMIC REVIVAL WILL GIVE PEOPLE THE CONFIDENCE TO TRADE UP

• Despite the economy continuing
to improve, 30% of Brits still
describe their financial situation
as either ‘tight’ or ‘struggling/in
trouble’. Only 24% identify their
financial situation as ‘healthy’.
While real wages are rising for
many consumers, confidence
remains flat and is generally not
translating into significantly higher
spending in shops.
• Dining out in pubs and
• Despite the associated costs
of Christmas, Brits still took
part in a wide variety of leisure
activities in January 2016.
However, many activities saw
a clear decline against October
2015 participation rates, a likely
reflection of post-Christmas
economising, as well as the
colder January weather. Weekly
participation rates also saw a
clear drop in many of the selected
leisure activities.
restaurants and going to the pub
for a drink are among the most
popular options, with participation
rates holding up much better
than for visitor attractions such as
museums and zoos.
• Visitor spending for restaurant
and pub dining is broadly similar,
although restaurants have a
much higher share than pubs of
customers who spent more than
£40 on their last visit (32% vs
18%).
• 30% of nightclub/late night bar
goers spent more than £40
on their last night out in these
venues in January 2016, broadly
in line with the share in October
2015. The nightclub sector has
been hit by falling numbers in
recent years, but while fewer
people are visiting clubs, average
spend remains relatively high.
• Food remains important to
many pub operators, with 23%
of pub goers having gone
to a pub because of its high
quality food within the month to
January 2016. Meanwhile, 19%
went for a celebratory meal in
this traditionally quiet trading
month, underlining the all-year-
round opportunities to tap into
milestones such as birthdays.
• 17% of pub goers used vouchers
for meals/drinks in pubs in the
month to January 2016, showing
how they can boost footfall during
quieter periods.

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6  LEISURE OUTLOOK
01
PARTICIPATION RATES FOR MANY LEISURE
ACTIVITIES HOLDS UP IN JANUARY
The pub industry continues
to shrink, with latest CAMRA
estimates indicating that around
27 pubs are closing per week. While
this number is lower than previous
quarters, it is still surprisingly high
and reflects the ongoing issues
faced by many publicans.
January is a traditionally quiet month
for many leisure activities, with
PARTICIPATION
consumers often having less money
after Christmas or making efforts
to improve their health (giving up
alcohol for the month, for example).
Nevertheless, more than half of
IN LEISURE
Brits went to pubs for a meal and for
drinks (53% and 49% respectively)
in January 2016. Pub dining saw
a notable decline in visitors of 5
percentage points while drink-led
ACTIVITIES
visitor numbers remained broadly flat
compared with October 2015.
Frequency of food-led visits to pubs
also fell against October 2015, with
a 4 percentage point decline in the
number of adults who dined in pubs
more than once in the one-month
period (27% vs 31%). However,
food remains important to profit
margins in the industry and 23% of
pub visitors state that they visited a
pub in January 2016 due to its high
quality food (see Pub Activities). This
shows how food – rather than drink –
can provide the impetus for landlords
to entice more people back to pubs.
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LEISURE OUTLOOK  7
Nightclubs/late-night bars remain
embattled, with only 18% of Brits
going to these venues in January
2016. Many consumers are still
offsetting the typically high entry
costs of these venues and trying
to save money on their nights out
by going home earlier, or staying in
pubs until later in the evening.
Outside of food and drink activities,
the cinema remains popular despite
the rising cost of tickets and food
concessions. 40% of Brits went to
the cinema in the month to January
2016, an improvement on the share
in October 2015 (36%), with gift
passes given at Christmas one
possible explanation for this small
increase in popularity.
Meanwhile, daytime activities such
as visiting museums, zoos and
theme parks saw a notable fall in
popularity in January 2016 against
October 2015. This is a likely
reflection on the associated costs of
going to these venues, but also that
these activities are often outdoors
and may have limited appeal in the
cold and wet January weather.
8  LEISURE OUTLOOK LEISURE OUTLOOK  9

FIGURE 1: “HOW OFTEN HAVE YOU DONE THE FOLLOWING LEISURE

ACTIVITIES IN THE PAST MONTH?”

Oct-15 Jan-16

More More
Once than Not at all Once than Not at all
once once

Gone to the pub for a meal 28% 31% 41% 26% 27% 47%
Gone to the pub for drinks only 20% 31% 49% 19% 30% 51%
Gone to a nightclub/late-night bar 9% 10% 81% 9% 9% 82%

BASE: 1,943/1,944 INTERNET USERS AGED 18+

SOURCE: LIGHTSPEED GMI/MINTEL

WHO DOES WHAT?

Men are significantly more likely
than women to go to live sporting
events, music festivals/concerts,
nightclubs/late-night bars and drink
in pubs/bars. However, there is
otherwise minimal variation in activity
penetration between the genders,
with men and women equally likely
to eat in pubs, underlining how food
can be a good way to entice women
to pubs.
Most activities also show a clear
skew by financial situation, with
those who claim to be financially
healthy the most likely to be able
to afford to take part in different
activities. This difference is
particularly stark for activities which
have higher associated costs or
entrance fees, such as going to the
cinema or visitor attractions such
as zoos.

Millennials were also the most likely
group to participate in all of the
stated leisure activities, reflecting
their relatively greater willingness
to take part in out-of-home pursuits.
Leisure participation rates drop off
notably among over-55s, although
does hold up for food-led activities
such as pub catering. Indeed, over-
55s were equally likely as Millennials
to have gone to the pub for a meal,
underlining its cross-generational, as
well as unisex, appeal.
Regional analysis shows that
Londoners are among the most likely
to participate in many of the selected
activities, a result of the wide variety
of leisure venues available as well
as the capital’s good infrastructure
and relatively young and affluent
population. Other regions with
large cities such as Manchester
and Birmingham also have above
average participation rates in many
leisure activities. However, the pub
holds a similar level of appeal across
the country, with minimal variance
between regions for eating and
drinking in pubs.

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02
10  LEISURE OUTLOOK
RESTAURANT FOOD HOLDS UP BETTER
THAN PUB GRUB FOR HIGHER SPENDING
Despite the economy continuing to
improve, 30% of Brits still describe
their financial situation as either
‘tight/struggling/in trouble’, and only
24% identify their financial situation
as ‘healthy’. January is a particularly
challenging time for many leisure
operators as many consumers have
limited funds after Christmas.
SPENDING AND
Vouchers/special offers are a
common part of the post-Christmas
landscape, with restaurant chains
in particular using these to boost
footfall. Many pub chains have
COMPANIONS
responded in kind, with 17% of
pub-goers having used one of these
in the month to January 2016 (see
Pub Activities).
FOR LEISURE
Among those who had visited a pub,
though, there was minimal change
in spend between October 2015 and
January 2016. 36% of pub diners
spent less than £20 on their last
ACTIVITIES
meal (including drinks), broadly in
line with the 34% who did so in the
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month to October 2015. Meanwhile,
41% spent £20-40 and only 18%
exceeded £40 in the month to
January 2016, the latter being a
decline on the October 2015 figure
of 21%.
Overall spending on food is fairly
comparable in pubs and restaurants
– the result of many pubs going
more upmarket with their food
but also due to the casual dining
trend in foodservice. With 37%
of pub patrons seeing pubs as a
good place for a special meal and
19% having visited a pub/bar for a
celebratory meal in January 2016,
there are clear opportunities for
landlords to appeal to consumers
who are looking for more premium
and fine-dining experiences (see
Pub Activities).
While restaurants saw their share of
visitors who spend over £40 hold up
in January 2016 (32%), pub dining
spend saw a small drop off, with
LEISURE OUTLOOK  11
only 18% of pub diners spending
more than £40 compared to 21% in
October 2015.Spending on meals in
fast food restaurants is generally low,
in line with the typically more value-
led and convenience positioning of
these venues: 70% of users spent
under £20 on their last visit.
The late-night industry has been
badly impacted over the past
decade due to increasing legislation,
changing consumer habits and,
post-slowdown, reduced budgets,
with costly entrance fees a notable
deterrent. Nevertheless, 30% of
nightclub/late-night bar goers spent
more than £40 on their last visit
to these venues. This figure is in
line with the October 2015 result of
27% and shows how there is still
significant money to be made in the
late-night market by tapping into the
fifth of adults who are active visitors
of these venues.
12 
12  LEISURE OUTLOOK LEISURE OUTLOOK  13

DRINKS SPENDING
REMAINS MODERATE
Despite government support in
recent Budgets – notably the early
removal of the alcohol tax escalator
beer is overpriced, with only 29% FIGURE 2: THINKING ABOUT THE LAST TIME YOU TOOK PART IN ONE OF THESE ACTIVITIES,
prepared to spend more than £4 per APPROXIMATELY HOW MUCH DID YOU PERSONALLY SPEND?
pint, helping to explain the moderate
drinks spend among pub drinkers. Oct-15 Jan-16
There was minimal change in spend
among pub drinkers between £0-£19.99 63% 60%

Pub for drink(s)

– the price of beer has continued October 2015 and January 2016. £20-£39.99 24% 24%
to rise. Many landlords are being Among the 49% of adults who drunk

only
£40-£59.99 7% 9%
forced to increase their prices due to in pubs in the month to January
pressure from larger breweries, at a 2016, three in five spent less than £60 or more 2% 3%
time when production costs should £20 on their last visit. Don't know/can't remember 4% 4%
be coming down due to falling fuel
and ingredient prices. The price of Nevertheless, 37% of pub drinkers
£0-£19.99 34% 36%
alcohol rose by 5.2% in January spent more than £20 on their last

Pub for a meal

cost of drinks)
(including the
2016 when compared to December pub visit, which does show that £20-£39.99 41% 41%
2015, a 2% higher rate than in the there are options for landlords to
£40-£59.99 16% 14%
previous year. encourage trading up with more
premium drinks. Craft beer can £60 or more 5% 4%
Alcoholic drinks still account for be used to tap into the increasing Don't know/can't remember 5% 5%
more than half of turnover for many association between food and beer,
pubs, with beer in particular being something which many restaurant
£0-£19.99 29% 27%

Nightclub/late-night
bar for a night out
important. Craft beer has helped chains are still overlooking.
tempt people back into pubs, and £20-£39.99 36% 37%
given them the chance to experiment £40-£59.99 21% 23%
with new flavours. However, 44%
think of beer drinkers think that craft £60 or more 6% 7%
Don't know/can't remember 8% 6%

BASE: ADULTS AGED 18+ WHO TAKE PART IN EACH OF THE FOLLOWING ACTIVITIES
SOURCE: LIGHTSPEED GMI/MINTEL

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14  LEISURE OUTLOOK LEISURE OUTLOOK  15

FIGURE 3: THINKING ABOUT THE LAST TIME YOU TOOK PART IN ONE OF THESE ACTIVITIES, WHO DINNER WITH A Predictably, the difference was
DID YOU DO EACH OF THESE ACTIVITIES WITH? PARTNER, DRINKS WITH even more pronounced when it
FRIENDS comes to clubs and late-night
Oct-15 Jan-16 bars: only 26% had been with their
Just under half of visitors to both partner, compared to 65% who had
On my own 9% 7% pubs and restaurants do so with been with friends. The rise of dating
Pub for drink(s) only

With my partner 40% 38% their partner. Given ongoing interest sites and apps are likely to have
in promotions, some special offers impacted on people’s willingness to
With friends 54% 58%
for couples on set dishes could be go to clubs and late night bars, but
With family members 16% 16% an effective way for venues to stand the data reiterates how late night
With work colleagues 4% 5% out in a crowded market. However, venues can still appeal to the young,
the emphasis differs when it comes free and single.
With others/someone else 2% 1% to consumers who visit pubs only to
drink. Although 38% of people who
On my own 4% 3% went to the pub for drinks did so with
their partner, a much higher share
With my partner 50% 48%
Pub for a meal

went to meet up with friends (58%).

With friends 30% 30%
With family members 36% 36%
With work colleagues 3% 3%
With others/someone else 2% 1%

On my own 6% 5%
Nightclub/late-night bar

With my partner 29% 26%

for a night out

With friends 64% 65%

With family members 10% 12%
With work colleagues 9% 10%
With others/someone else 5% 3%

BASE: ADULTS AGED 18+ WHO TAKE PART IN EACH OF THE FOLLOWING ACTIVITIES
SOURCE: LIGHTSPEED GMI/MINTEL

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03
16  LEISURE OUTLOOK
HIGH QUALITY FOOD CAN BE AN
EFFECTIVE FOOTFALL DRIVER
When presented with a list of
pub-related activities, pub-goers
were most likely to identify high
quality food as the reason for
visiting a pub (23%). Over-55s were
particularly likely to state this activity
(28%), and with 18% of these older
pub goers having used vouchers
in pubs in January 2016, tailored
money off promotions could be an
effective footfall driver among the
PUB
older demographic.
17% of pub visitors used vouchers
for meals or drinks in pubs within the
month to January 2016. Vouchers
ACTIVITIES
continue to be popular among
restaurant chains such as Prezzo
and Ask as they look to entice
consumers to dine out of home.
Pub chains such as Nicholson’s
and Fullers have also used special
offers for subscribers in order to
tap into this budgeting mentality.
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LEISURE OUTLOOK  17
Customised discounts could be an
effective solution of using promotions
in a more focused way, enabling
landlords to track uptake and adapt
offers accordingly . Greene King’s
new partnership with Tesco, which
enables consumers to trade in
Clubcard points for spending in
their estate, is a good example of
this in action.
Despite January being a
relatively quiet month for pubs,
celebrations such as birthdays
continue to provide opportunities
to boost footfall, with 19% of
pub-goers having a celebratory
meal in a pub/bar in the month to
January 2016. High quality food
options, designated dining areas
and a wider range of sparkling wines
are possible ways of elevating these
special occasion visits.
18  LEISURE OUTLOOK LEISURE OUTLOOK  19

UTILISING GREATER
CONSUMER
CONNECTIVITY
Social media has become hugely
popular over the past decade, with
78% of adults now using at least
one platform. These channels
have become valuable for FMCG
brands, giving them direct lines of
communication with consumers.
However, they have not been
leveraged as effectively by the pub
trade, and with only 5% of pub
goers following a pub on social
media, promoting events and offers
via these channels are currently
only likely to gain limited visibility.
Proactively encouraging visitors to
follow their pub or requesting email
addresses are ways for landlords to
boost customer engagement levels.
15% of pub goers checked a pub’s
website before deciding whether
to visit, with women most likely
to do so (19%). Women are also
twice as likely as men to have
ordered a lower calorie drink or dish
(14% vs 7%), showing that calorie
information on the website would
also probably be well-received by
women in particular. Having up-to-
date and user-friendly online details
of food and drink menus, and even
daily specials and current guest
ales, could be a deciding factor in
securing customer visits, particularly
for destination pubs such as those in
rural areas.
CHILDREN AND
SPORT IN PUBS
The decline in pub visits and volume
sales of alcoholic drinks have led
to a gradual evolution of the pub
landscape, with more venues
becoming food- and family-friendly.
While many consumers are opposed
to children being allowed in pubs,
parents are an important driver of
visits, with 21% of parents having
visited a pub with children in January
2016. The ever-growing importance
of food to pub revenues means that
landlords are competing as much
against mid-market restaurant chains
as they are against other pubs.
There’s a growing case
for replicating the kind of
child-oriented provisions, such
as toys and colouring books, that
the likes of Pizza Express and
Wagamamas have long offered
parents, as well as designating
specific times and spaces of the pub
in which to allow children.
Live sport on TVs is another factor
which can be divisive, appealing
to some consumers but deterring
others. Men are significantly more
likely than women to have watched
live sport at the pub in the month to
January 2016 (24% vs 9%). While
many landlords deem TV sport
subscription packages as essential,
these can create intimidating and
territorial atmospheres, deterring
some groups such as women and
over-65s.
With subscription costs generally
rising annually, there is a need for
such pubs to see a considerable
uplift in sales to break even. As such,
some pubs may be better served
by exploring alternative sources of
entertainment to boost footfall such
as food or drink festivals and ‘meet
the brewer’ events.

FIGURE 4: “THINKING SPECIFICALLY ABOUT PUBS/BARS, WHICH, IF ANY, OF THE

FOLLOWING HAVE YOU DONE WITHIN THE LAST MONTH?”

Oct-15 Jan-16
Visited a pub because of its high quality food 26% 23%
Checked a pub's website before deciding whether to visit 18% 15%
Visited a pub/bar for a celebratory meal 18% 19%
Watched live sport in pubs (eg football, rugby) 18% 17%
Used vouchers for meals/drinks in pubs (eg free pints, money off) 15% 17%
Visited a pub with my own/someone else's children 13% 12%
Used a pub's designated smoking area 13% 11%
Ordered a lower calorie drink or dish 9% 11%
Asked staff for a food/drink recommendation 9% 7%
Written a review online about a pub/restaurant 8% 7%
Followed a pub/restaurant on social media (eg Twitter, Facebook) 7% 5%
Used a restaurant/pub/takeaway smartphone app 6% 8%
None of these 26% 28%

BASE: 1,356 / 1,272 ADULTS AGED 18+ WHO GO TO PUBS/BARS

SOURCE: LIGHTSPEED GMI/MINTEL

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04
20  LEISURE OUTLOOK
CONFIDENCE STAGNATES BUT HIGHER TICKET
PRICES SHOULD STILL RESONATE
• While real wages are rising for
many consumers, confidence
remains flat and is generally not
translating into significantly higher
spending in shops. The savvy
mentality which came to the fore
in the aftermath of the recession
is likely to remain, meaning
that well placed promotions will
continue to be welcomed by
WHAT IT
many consumers.
• However, there are signs
of recession fatigue as many
consumers appear willing to
MEANS
spend on high ticket items such
as cars and electronics. Within
leisure, this should safeguard
activities such as attending
sporting events and going to
the theatre.
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LEISURE OUTLOOK  21
• Nevertheless, leisure spending
has remained broadly level in
January 2016 despite the post-
Christmas lull in participation.
Only attractions such as zoos and
museums saw a significant drop
in participation in January 2016
vs October 2015.
• Food remains a notable
opportunity for landlords,
although landlords need to be
careful not to become too food-
oriented and become seen as
more of a restaurant than a pub.
• Loyalty cards and tapping into
supermarket point schemes,
as seen with Tesco Clubcard’s
partnership with Greene King,
can be lucrative ways of boosting
customer visits.
• 30% of nightclub/late night bar
goers spent more than £40 on
their last night out in these
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