1. Small pubs and bars bounce back after more than 15 years of decline

The number of small pubs and bars in the UK has increased for the first time in more than 15 years.

The net closure of pubs in the UK has been well documented by several organisations, including the British Beer and Pubs Association and the Campaign for Real Ale. Economies of ale: small pubs close as chains focus on big bars, published by the Office for National Statistics (ONS) in November 2018, showed that turnover and employment in the sector were holding up, despite previously consistent pub and bar closures.

The latest ONS data show that the number of small pubs and bars (that is, those with fewer than 10 employees) increased by 85 (a 0.4% increase) in 2019. This follows more than 15 years of closures. The overall number of pubs and bars in the UK increased by 315 (a 0.8% increase) between 2018 and 2019, the first increase for a decade.

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2. Food for thought

New data from the Office for National Statistics (ONS) show that pub and bar enterprises now employ more people serving food than people working behind the bar. In 2003, bar staff made up roughly 4 in 10 employees and those serving food (that is, chefs, cooks, waiting staff, and kitchen and catering staff) made up roughly 3 in 10 employees. Since 2016, the opposite has been true, with those serving food outnumbering those working behind the bar.

The tendency in pub and bar enterprises to employ more people serving food may be a reaction to changing consumer habits. There is a long-term trend towards people spending more of their household income on eating out and less on drinking out. We are monitoring the slight decline in spend on meals eaten out in the financial year 2017 to 2018, as this may not be indicative of a consistent trend.

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3. State of the nation’s pubs and bars

As well as an increase in the number of pubs and bars in the UK, turnover in the sector increased by £847m (3.8%) in 2017, after inflation is considered. Real turnover in the latest year of data is at its highest level since the financial crisis of 2007 to 2008 ended. Moreover, there were 7,000 more jobs in the sector in 2019 compared with 2018, an increase of 1.6%.

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4. Your local

Figure 6: What has been happening in your local area?

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Source: Office for National Statistics – Inter-Departmental Business Register

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Figure 7: The number of pubs and bars has fallen in most parts of the UK between 2001 and 2019

Percentage change in number of public houses and bars in local authorities

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Source: Office for National Statistics – Inter-Departmental Business Register

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The UK pubs and bars sector may be bouncing back after years of net closures. The sector has responded by diversifying its offer, evidently in the area of food service. This year’s data have shown a net increase in small pubs and bars for the first time in more than 15 years and the highest levels of real turnover since the end of the financial crisis of 2007 to 2008.

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Contact details for this Article

Tom Liu
cities@ons.gov.uk
Telephone: +44 (0) 207 592 8625