It’s a challenging time for the UK’s pubs, but we’re not calling closing time yet…

It’s a challenging
time for the UK’s pubs,

but we’re not calling closing time yet…

Explore how pubs can improve efficiency, protect customer data and deliver connected experiences through secure, scalable digital infrastructure.Contents

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It’s a challenging
time for the UK’s pubs,

but we’re not calling closing time yet…

There's no doubt that times are tough for the great British pub, with 161 closures reported across the country in the first quarter of this year alone¹, combined with £322.5m of new employment costs to consider since the last autumn budget and the rising cost of national insurance². At the same time, we're seeing a widespread cultural shift, particularly amongst the younger generations.

About a third of young people have reported cutting back their alcohol intake over the past twelve months, typically citing budget and health as driving factors (or just wanting to drink less!)³. But despite this shift, the sector remains valued at £24.9bn (with this expected to rise to £25.7bn by 2028)⁴, and post-work drinks remaining a consistent source of revenue, and pub meals remaining popular despite an overall drop in dining out⁵.

So, I feel we can confidently say that one of our most beloved national institutions isn't going anywhere, but it's not going to be enough to assume drinking and dining habits will remain the same, or that patrons' expectations around the overall pub experience are the same as they were just a few years ago. Specifically, here are the four ways I would anticipate the sector evolving in the years ahead…

Operational efficiency will be a top priority

Rising labour costs, particularly the increase in both National Insurance and the National Living Wage - mean the sector as a whole is having to do more with less, ensuring available staff can continue delivering exceptional service without putting their own health and wellbeing at risk. A detailed answer to these challenges lies outside the scope of this article, but when the highest level of operational efficiency is required, technology definitely has a role to play by reducing waste, automating routine processes and administrative tasks, and providing streams of real-time staffing information that support better decision-making at the micro and macro levels. All of this will ultimately lead to tangible cost savings that can be reinvested in the patron experience.

Patrons' expectations will continue evolving

Along with the shift in drinking habits that we touched on earlier, it's also important that we're cognisant of the different ways in which patrons access services and information. We very much live in an interconnected society, with younger generations preferring everything to be readily accessible through their smart devices. However, the pub sector is already very much ahead of the game here, having rolled out app-based service at scale during COVID. This means we have a strong foundation to build on, gaining a better understanding of patrons' ordering habits and utilising this to tailor services, menus, and marketing activities accordingly.

Infrastructure must be designed for scale

Far too many pubs that are part of chains or groups are still relying on fragmented, multi-vendor environments when it comes to connectivity, systems, and communications. Beyond the considerable ongoing expense this presents, it puts far too many pubs at risk of being unable to trade if their local infrastructure goes down. In our post-cash society, if you can't take card payments, you can't do business, which impacts both your profits and your reputation.

Furthermore, when central offices must manage hundreds of sites across the country, all utilising their own legacy infrastructure, it creates an unacceptable operational burden.

For this reason, we are seeing an increasing number of chains and groups accelerating their long-term digital transformation plans, working with trusted technology partners to phase out siloed legacy systems in favour of fully consolidated infrastructure that provides full control and visibility of all sites, combined with in-built redundancy to ensure trade is never disrupted by an outage, even in particularly remote locations.

Security must be inherent in the design

Of course, as pubs embrace the next generation of interconnected infrastructure, their tech-savvy patrons expect them to take action to ensure their personal data remains secure, before, during, and after each visit. Security ecosystems must take into account payment card data, guest WiFi networks, loyalty databases, employee records, and much more. This is not negotiable - the regulatory landscape is increasingly stringent about the way customer data is handled at every touchpoint, and the penalties for non-compliance are steep.

We just have to look at the number of organisations who've been left unable to trade and suffered potentially irreparable reputational damage after falling victim to cyber attacks in recent years to see how serious this situation is. Digital transformation initiatives cannot afford to treat security as a bolt-on. Instead, it must be inherent in the design of all infrastructure, with corporate security policies automatically applied wherever possible and regular training provided for all staff.

From pouring pints to delivering experiences

While there are certainly challenges ahead, the UK's pubs are well-placed to weather them, ensuring these spaces remain a beloved social hub for future generations. While younger people are certainly drinking less, quality experiences never go out of fashion, and the pubs that will continue to thrive are the ones who embrace this fact, looking for new ways to bring people together in unique environments.

While it may feel contradictory to talk about digital transformation at the same time as human experiences, automating routine processes and opening new channels for interaction with patrons is all about ensuring staff are free to focus on the personal touches that turn first-time patrons into loyal, repeat ones. A perfect example of what can achieved when people and technology come together!

If you're keen to accelerate your own digital transformation after reading this, let's arrange a conversation.