Brewed vs. Brewed: The Battle of Pubs Against Cafes and Delivery Apps

In a candid discussion about the changing landscape of leisure, Greene King’s CEO Nick Mackenzie highlights how local pubs face increasing competition from cafes and food delivery apps like Deliveroo. With over 14,000 cafes now in the UK, Mackenzie acknowledges that while pubs still exceed 40,000, many patrons are opting for alternative social spaces. He emphasizes that drinking culture has shifted, noting that a significant portion of younger adults—one-third of those under 25—and 20% of all Brits now choose not to drink alcohol.

Mackenzie asserts that pubs have a unique role in fostering community spirit, despite these challenges. He introduces the idea of low- and no-alcohol options, stating that establishments must adapt to offer inviting spaces for non-drinkers. The trend has led Greene King to enhance its coffee offerings, as many pubs now cater to diverse tastes, including a booming demand for hot drinks.

The transformation of pubs into food-led enterprises instead of traditional drinking venues reflects broader industry trends. Data from the ONS indicates that since 2014, more staff are now dedicated to kitchen roles than bar roles, illustrating a shift toward gastro pubs. Additionally, the rise of competitive socialising venues, which offer games alongside drinks, exemplifies how hospitality is evolving, with the number of such bars doubling from 280 pre-pandemic to around 600 currently.

Mackenzie’s past experience with Merlin Entertainment suggests that he could bring new entertainment concepts into Greene King pubs, drawing on his family’s enjoyment of theme parks. As he navigates the competitive landscape, he calls for a friendly approach from the government regarding tax policies affecting the hospitality industry, specifically addressing high business rates that disproportionately impact these establishments.

As the conversation unfolds, Mackenzie expresses optimism for reforms that could provide vital support for pubs, cafes, and restaurants, underlining their importance to the community. With anticipated government reforms and a proactive vision for the future, Greene King aims to thrive amid the evolving choices of modern consumers.