Big Pubcos triumph during recession while independents feel the pinch

Large Pubcos are continuing to grow during the recession at the expense of small independent operators, new research has found.

Like-for-like sales for were up 0.8% on August 2008, according to Coffer Peach Business Tracker’s latest collation of sales data from 13 major pub and restaurant companies.

“The big guns are continuing to grow their collective market share at the expense of the competition. The implication is that the smaller and independent operators are the ones most feeling the spending pinch,” said Peach Factory’s founder Peter Martin.

The Tracker added that major Pubcos have been able to use promotions and discounts to boost business, with a collective 1.0% like-for-like sales gain in July, 0.4% in June and 0.6% in May.

David Coffer, chairman of the Coffer Group said: “Although there is much debate about the effect of promotions and discounting in the sector and the effect long-term on margins and profitability, the leading players are continuing to give people a reason to go out and are attracting customers through their door.”

More than 50 pubs now closing each week, warns BBPA >>

Sales at major pub and restaurant chains holding up >>

Marketing and deals help chain pubs and restaurants through the recession >>

By Emma White

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