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Morning Briefing for pub, restaurant and food wervice operators

Fri 29th Sep 2023 - Britain loses 30% of nightclubs since covid as consumers’ late-night habits evolve
Britain loses 30% of nightclubs since covid as consumers’ late-night habits evolve: Covid and changing consumer habits have led to a sharp drop in Britain's nightclubs as consumers’ habits diversify and shift towards a broader range of outlet types and periods of the day, according to new research. CGA and AlixPartner's latest Hospitality Market Monitor reveals a 30.0% net decline in nightclubs between the start of the pandemic in March 2020 and June 2023. This is more than double the 13.0% drop in all licensed premises over the same period. Ten years ago, Britain had nearly 1,700 nightclubs, but in June the total was barely half that at 873. The sharp decline reflects the impact of long periods of covid-related closures of nightclubs, which were among the last venues to emerge from trading restrictions. It also follows longer-term changes in people's habits that have diversified the late-night market and increased the popularity of competitive socialising venues and other experience-led and immersive concepts. Despite the significant losses among nightclubs, the market has seen a growing diversity of alternative “high-tempo” experiences, and bar numbers have fallen by only 3.1% since March 2020 – a fraction of the 30.0% drop in nightclubs. There’s also increased interest in experiential experiences within hospitality, as research from CGA’s REACH Global Survey shows half of global consumers plan to visit venues that offer an exciting experience, with street food/pop-up markets and food and drink festivals also showing popularity with more than half of consumers (57%). Karl Chessell, CGA by NIQ's director – hospitality operators and food, EMEA, said: “The late-night market isn’t disappearing, it’s just changing.” Graeme Smith, AlixPartners’ managing director, added: “We’ve seen a recent explosion of experiential bar and restaurant concepts across the industry, and with bars and other venues also now staying open later into the early hours, consumers have a wide array of experiences and options to choose from.”

Report calls for greater support for pubs with tax rebates and by reintroducing dedicated minister: Government must give pubs at the hearts of their communities greater support with tax rebates to safeguard vital social lifelines, a new report from think-tank Localis has urged. In its “Inn-Valuable: unlocking the socio-economic potential of our nation’s pubs” report, Localis also argued for a minister for pubs role be reinstated to join up help for the country’s pubs sector – which cumulatively supports 936,000 jobs, generates £28bn in GVA to the economy and delivers £15bn in tax revenues annually. According to polling undertaken by YouGov for the report, 75% of people felt the impact of pubs to community life to be positive. When asked if pubs are important in bringing people together, more than four-in-five (81%) agreed they are. Meanwhile, 68% felt pubs help combat loneliness in their local area. The report also makes the case for business rates rebates for those pubs that take on socially valuable roles such as food banks or in providing warm spaces for vulnerable people, with a call for a “modest” £4m cash pot to help 1,000 pubs to diversify. Emma McClarkin, chief executive of the British Beer & Pub Association, said: “With closures continuing to rise and pubs under threat from further duty and business rates cost hikes, we hope the government will consider the proposals put forward by this report so the foundations can be laid to help pubs continue to do this brilliant work in their communities long into the future.” 

Just Eat calls on government to drive down cost of sustainable packaging for restaurants: Just Eat has called on the government to help drive down the cost of sustainable packaging for restaurants as new research showed almost three quarters (73%) of Brits believe the single-use plastic ban should be extended to include takeaway boxes. The findings, conducted by YouGov on behalf of Just Eat, showed tackling plastic waste tops the list of the public’s environmental concerns – above water quality, extreme weather and air pollution. It comes as a ban on the supply of a wide range of single-use plastic items, including plates, trays, bowls and cutlery, comes into force in England on Sunday (1 October). While plastic waste continues to be a concern for Brits, the research points to a decline in people willing to pay a premium for more eco-friendly packaging, when compared with polling initially conducted by YouGov in April 2019 – 33% compared with 50% previously. Just Eat wants to see government action to support the sustainable packaging sector, “essential to making these items more widely available and driving down costs for businesses and consumers”. The campaign is part of Just Eat’s wider mission to raise awareness of the barriers facing restaurants when it comes to implementing sustainable packaging, and its mission to reduce plastic waste in the takeaway sector. Just Eat’s aim is to offer sustainable packaging for all cuisine types, and the business is continuing to test new plastic-free solutions as well as reusable options. 

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