11 Feb 2021
Posted in Consumer
Platinum-Marston’s venture to miss golden opportunity as UK pub and bar sector set to recover, says GlobalData
Following today’s news that US-based group, Platinum, pulled out of a deal with British suburban pub chain, Marston’s;
Jim Toy, Consumer Analyst at GlobalData, a leading data and analytics company, offers his view:
“Marston’s future revenue opportunities in the UKs pub, club and bar sector are promising when considering GlobalData’s sector forecast, which predicts a spike to £18.8bn* in 2021. This outlook shows that the British pub scene remains a lucrative opportunity, and Platinum may be missing out on a bullseye shot by pulling out of the Marston’s venture. Even though many modern consumers are showing a preference of drinking at home, the novelty aspect of traditional pubs will still bring in a reliable number of consumers after the pandemic ceases, particularly given the historic relevance of pubs in the UK.
“With Wetherspoon’s expected to experience a boycott, thanks to the trending hashtag #NeverSpoons that went viral last year, smaller chains such as Marston’s provide an alternative for consumers to get their fill of value food and drink items that will suit consumers hoping to celebrate the easing of lockdown restrictions when pubs finally re-open.
“In the long-term, the chain will need to adapt to ride the recovering value in the UK pub, club and bar sector over the next four years. GlobalData forecasts show the sector will gradually revive at a compound annual growth rate (CAGR) of 3.2% to reach £20.7bn by 2024*. Competition in the market will be driven by demands from social bubbles and reuniting families. This plays into Marston’s business strategy, whereby many of their pubs are positioned as friendly ‘locals’ that are not necessarily appealing to the vast swarms of commuters in years gone by.”
* GlobalData’s Foodservice: Chain vs Independent