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Government report Economies Of Ale: Changes In The Sector 2001-2019 tells us that ‘there is a long-term trend towards people spending more of their household income on eating out and less on drinking out’.
No surprise to anyone in the business, this has led to the hospitality sector slowly increasing focus away from drink to catering, with the number of employees serving food now outnumbering those who work behind the bar (House Of Commons Briefing Paper, April 2021).
The change has boosted the idea that premises which serve alcohol, including holiday parks and certain types of visitor attractions, are increasingly more suitable for families than either casual or binge-drinkers, which has been rewarded with a rise in revenues.
After many years of success however, this model of business which promotes the idea of large spends on days out is now facing a huge problem. According to a 2022 Mintel report on UK attitudes, 68% of consumers feel the rising costs of living has made eating out less appealing, unless they can deliver increased value for money.
‘The cost-of-living crisis has impacted the catering market, with diners cutting back on the frequency of their visits… This will challenge venues to offer higher-quality experiences that deliver value-for-money… the catering industry is increasingly threatened by consumers who are tempted to replace dining with competitive socialising experiences’.
Quoted in the report, Senior Foodservice Analyst Trish Caddy tries to make us realise that ‘this will challenge establishments to offer higher-quality experiences, which could include tapping into the increasingly popular competitive socialising trend, to help diners feel excited about heading out to a venue and encourage them to spend more time there’.
As the National Study Of Playgrounds Report has discovered, play areas are incredible tools for encouraging people to, ahem…, hang around:
Writing about a Lumina 2023 market report for the Morning Advertiser, Rebecca Weller highlights the finding that ‘value for money saw the largest increase as a reason for choosing an establishment’.
This is emphasized by the BDO’s 2023 report on Prosperity Through Adversity. ‘For consumers who continue to eat out, finding value for money will be crucial… In an inflationary environment, consumers are placing greater emphasis on experience when dining out’.
Pubs, holiday parks and any attractions that feature a dining area as a serious revenue stream should take note. Compounding the matter, a 2022 Mintel report found that 46% of people who don’t engage with the hospitality sector are only doing so because they believe it to be too expensive, and worse still, ‘20% of Generation Zs prefer other leisure experiences over going out. As a result, the eating out market will need to diversify their offerings in order to remain attractive’.
There is hope for those in hospitality willing to adapt however, and even opportunities to thrive.
Families are eager to visit but need reassurance that they are getting the most for their money, particularly since prices are going up to absorb costs. Some visitor attractions are facing enormous overheads this year, specifically farm attractions who are suffering higher rates, so visitors need to feel paying the extra is worth it.
As appealing as dining out may be, it alone is no longer the main draw for modern customers, who are looking for ‘experiences’ when they eat out.
Help change minds of the younger crowd who don’t consider going out their primary choice of fun activity.
On delivering extra: ‘It has encouraged outside play, and when the children are happy, the parents are too’ – Auchenlarie Holiday Park
On customer experiences: ‘Children love the climbing frame with 2 slides best, even older children still like to play on the swings’ – Kingsbridge Caravan Park
On offering to everyone: ‘Our park is now aimed at all ages, so attracting more people to visit’ – Shell Island
Returning to the BDO’s Prosperity Through Adversity, ‘a survey by Pentallect found that independent restaurants were rated more highly than chain restaurants for’ amongst many things, ‘community orientation and being ‘special’’.
‘There appears to be a trend of operators in villages and smaller towns performing well as people look to stay local and perhaps tighten the purse strings.’ The report continues, ‘footfall in city centres remains lower than pre-pandemic levels… Businesses in the sector will need to be more on their toes than ever to survive and thrive in the coming year… Failure will inevitably create opportunities for those that can weather the storm and adapt’.
Reasons that venues beyond city centres can fare better are, in part, due to the outdoor space which affords them the room to adjust and alter to consumer demands – for alcohol establishments this can even mean developing a sense of community.
But this isn’t the bar-fly type of community from the grubby local taverns of yore – much like people you expect to find at holiday parks and visitor attractions, pub neighbourhoods of the new era are incredibly family-orientated.
According to Leisure and Travel Analyst Jennie Bryans, speaking in the Mintel UK Pub Visiting Report 2022, ‘Moving forward, venues should focus on diversifying their offerings to cater for a wide variety of customers, by promoting space for remote/hybrid workers, hosting community events and helping consumers to celebrate special occasions’.
Discover How Playgrounds Became More Attractive For Days Out
Also Of Interest:
Creative Play clients reveal how profitable their outdoor play areas have proved
Why now is the best time for hospitality sector businesses to consider an outdoor play installation
How playgrounds meet demand from increased staycationing and visitors from abroad