The Scottish Licensed Trade Association in association with KPMG today issues its latest “business insight survey” based upon responses from 700 + on trade outlets from all parts of the country
The SLTA has released the latest quarterly update of the key retail trends in the Scottish On-Trade.
Paul Waterson Chief Executive of the SLTA said,
“Our survey is an indicator of the key challenges facing the many small to medium sized businesses who trade within the wider hospitality sector, covering pubs, hotels and clubs. Our survey is based upon quantitative research from 700 on trade retailers covering the length and breadth of the country.
For the first time we asked retailers about their investment in training, and despite the challenging economic conditions we are delighted to see retailers continue to invest in the future. Far from being a stop gap job, we are being successful at attracting people who want a long-term clearly defined career path. The commitment to investing in people and growing their businesses is reflected in 95% of businesses either maintaining or growing their training, against a market with 44% of outlets in decline.
Whilst overall optimism levels have increased with 36% of business reporting an upturn in performance versus 24% in our September survey, we are still concerned about the challenges facing retailers serving rural and tourist locations. These businesses are being hit particularly hard by government legislation related to the minimum wage and drink driving.
The report also highlighted that retailers continue to develop their offers to suit emerging trends. Waterson commented ‘retailers have now progressed beyond that terrible phrase, pub grub, with many venues now offering technically advanced dishes using an array of locally sourced food – it is a huge growth area for our members. We see ourselves as an integral part of delivering Scotland’s ambitious food and drink plans. Also nearly 70% of retailers have recognised the importance of the growth in craft beer, but this is still an opportunity for the 30% of retailers who don’t stock craft beer. Similarly in soft drinks, where we are seeing anecdotal evidence of a growth in non-alcoholic cocktails.
As responsible drinking is firmly on our agenda, we will be working with our members to help them develop their ranges of soft drinks, non-alcohol beers and, wines and non-alcoholic cocktails.’’
The SLTA recently completed a survey of over 700 outlets, representing over 10% of Scotland’s pubs and bars, ranging from single outlets in remote tourist locations to owners of multi-site gastro pubs and bar in city centres.
The report is the latest in a series of quarterly review of performances across key drink categories and highlights that food, craft beer and soft drinks, are relatively out-performing the market. Also, it looks at the importance of geography, and contrasts performances in city centre locations versus tourist/ remote locations
Waterson added,
“The SLTA has been the voice of the licensed trade in Scotland since 1880. Our business reports, sponsored by KPMG, allow us to publicise key insights from operators who are at the front line of the business. I know that our surveys are eagerly anticipated by our Members, other Trade Associations, Producers, Wholesalers, Licensing Legislators, and The Media “
Executive Summary
- Participants
- 700 outlets participated based all over Scotland, and varied from single outlets to PLCs, SLTA members and non-members
- Only 32% of outlets expect to grow in 2016,
- Remote / Countryside Venues continue to under-perform the market with 50% showing a year on year decline
- For total calendar year to date 36% of businesses show year on year vs 24% in previous summer survey
- Outlets serving food performed significantly better with 53% in growth for Xmas / NY
- 55% of outlets report a decline in beer sales, significantly higher than wine, spirits
- 50% of outlets report an increase in craft beer sales, nearly double the number of outlets reporting total beer sales up (26%)
- Concern about Government legislation, including minimum wages continue to increase, with 75% citing Government Legislation and Minimum Wage Legislation as their big challenges
All data copyright SLTA 2016