According to the latest IbisWorld Industry Report on Pubs, Taverns & Bars in Australia (March 2012) titled ‘Unhappy hour: Declining consumption and competition from supermarkets affects profit’ the industry is forecast to grow by 2.1% in 2012 – 13 with revenues estimated to increase at an average annualised rate of 2.5% over the five years through 2016-2017. Moderate growth is expected over the next five years as an improved consumer environment dictates demand for better quality food and beverage variety.
This rising interest in high quality ingredients and gourmet food is a win for the gastro pub while venues that deliver craft beer, cider and other premium beverages including cocktails are expected to benefit from rising consumer disposable income.
According to the report Industry challenges will continue to include reduced beer consumption (now at it’s lowest recorded level in 50 years), declining gaming revenues in conjunction with the Government’s pending mandatory pre-commitment system by 2016, increased competition in the form of discounted beer, wine and spirit pricing from supermarket giants Woolworths and Coles (now with an estimated market share of almost 60% between them) and the increasing costs of regulation as per government policies to curb alcohol-related violence.
Despite these challenges brighter futures are predicted for those operators who read and adapt to growing consumer trends including:
- increased interest in locally sourced produce and high quality food ingredients
- a need for family-friendly environments that incorporate activity variety day to night
- reliance on social media/networking sites (for event/venue promotion and interaction)
- small/niche bars
- beverage diversification – cider, craft beers and cocktails
Whether you are an existing operator or new to the industry the IbisWorld Report (H5720) is a relevant read that is as interesting as it is detailed and can be sourced directly from http://www.ibisworld.com.au/industry/default.aspx?indid=448.
Should you wish to discuss the predictions of this report and the impact on your business please contact me direct on email: [email protected] or phone: 0457 883 700.