This report intends to determine why pubs in the UK are increasingly transforming into gastro pubs.
The first part of this study will review recent statistics to give an overview of the pub sector’s position in the hospitality industry, to describe the size, scope and decline of this individual sector.
The second part will evaluate how macro factors have affected this industry, both in the last 10 years and currently, using PESTEL analysis. This analysis will then be used to forecast directions for the pub sector. The Palmerston, a pub turned gastro pub, will be referred to, to illustrate these findings and profitable recommendations will be made for the sector and The Palmerston
Although the report focuses on pubs, statistics used represent bars and nightclubs as these are commonly perceived to be the same sector. PESTEL factors have, where possible, been analysed in separate sections even though some can be related to one another.
Traditionally, pubs existed solely for selling alcoholic drinks as they represented a retail dimension for breweries (Market & Business Development (MBD), 2000). This has changed to pubs focusing on other features to attract customers, such as providing more entertainment and becoming a food-led outlet.
According to statistics from people 1st (2008), the pubs, bars and nightclubs sector is one of the biggest within the hospitality industry in terms of labour force size, number of enterprises and establishments and turnover (see appendix 1, 2 and 3 ). The majority of the workforce is part time and female (see appendix 4 and 5).
Although a large sector, pubs are in decline. Pub closures in the UK have increased to five every day partly due to dropping beer consumption (British Beer & Pub Association (BBPA), 2008). This market has seen a constant drop over the last 30 years with only one small rise in 1988 (see appendix 6).
Independent pubs are constantly
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