Following the recent report from Coffer Peach Business Tracker highlighting flat performance across the Managed Pub & Restaurant market, the latest data from CGA Peach’s sister tool, Trading Index, highlights the notable relative growth within Circuit Bars. Traditionally a late-night sub segment, within the M25 Circuit Bars have seen like-for-like sales up +5.3%, with food at the heart of the success with like for likes at +9.5%
Circuit Bars are typically outlets that target a lower age profile – males and females aged 18 to 35. They are wet led but with a food offer. Student venues such as Student Union bars are the most obvious example, but age profile of customers is the critical factor – and they can be located in town centres as much as on campus.
Not just ‘late-night operators’
The results from CGA Peach’s Trading Index, which collates daily sales information from over 6,000 Managed pubs, bars and pub restaurants, are particularly striking when considering the strong post-Olympic comparable for the capital.
In short, Circuit Bars are now more than just late-night operators, particularly in London.
Share steal is coming from Branded Restaurants, thanks to their increasingly sophisticated food-offer and improved operational standards on trade-ups. This is particularly evident in the sales of starters, sides and mains – which achieved a combined like for like growth of 33%.
This evolution in food and service dramatically increases dwell times in this style of concept, highlighting extended occasions beyond traditional wet led circuit behaviour.
Marrying improved food and drinks service
This multi-purpose functionality of Circuit Bars see the marriage of an improved food offer and service with the effective drinks ranging for which the segment is more commonly known.
Commenting following the most recent data from the Coffer Peach Business Tracker, Paul Newman, head of leisure and hospitality at Baker Tilly UK, sums up the Trading Index findings:
“Innovative fit-outs incorporating comfortable surroundings with a wider selection of craft beers and cocktails together with a quality food offering are driving this resurgence, particularly within London and larger towns around the UK.”
Wet sales also growing
Wet sales in this segment are also generating growth, at a more modest +4%. This growth is driven by the Gin, Malt Whisky and Sparkling Wine categories associated closely with food occasions, cementing the view that Circuit Bars are competing effectively in this space within the M25.
Meeting more varied needs through the day
Scott Elliot, Director at CGA Peach added “Anybody who goes into trade will recognise that circuit bars are changing. Led by changing consumer expectations, many circuit bars now have the ability to meet more varied needs via all day operations, distinct day part strategies and a better food offer. These types of flexible outlets are increasingly a threat to informal dining operators and provide consumers with both food and drink experiences in line with the latest trends.”