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Hospitality – Diageo's premium offering a solid option

Pricing power could help industry suppliers to mitigate the inflationary surge
January 25, 2022
  • Venues saw reduced footfall due to the initial spread of Omicron
  • Premium brands in the sector offer some support as inflation bubbles up

How many pubs are you aware of which have closed their doors since the start of the pandemic? Under planning laws, pubs are in a class of their own – “Sui Generis” – so there is no permitted development allowing the automatic change of use. Given the steep fall-away in the number of pubs trading, the pressure to relax repurposing restrictions must have intensified since the onset of the pandemic.

The latest AlixPartners CGA Market Recovery Monitor shows that the UK has lost 8,228 pubs, bars and restaurants since March 2020, with the “wet trade” bearing the brunt of the closures. Restaurants have fared much better, aided by direct government intervention.

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