What Challenges Is The Bar Industry Facing In 2019?

This year has been a turbulent one so far for much of the hospitality industry across the UK. This is due a number of different factors but some of the main ones include price hikes ,  Job losses and increase in competition. The bar industry in 2019 is facing a number of major issues and in this article we will look at what those are and what can be potentially down to solve them.

Brexit

Brexit is a major issue for many pubs and restaurants across the UK. One of the main reasons for it being an issue is millions of European staff are employed across this industry in the UK and have been for many years. Due to the uncertainty regarding immigration as well as economic uncertainties.  One of the by -products of Brexit has been many drinks companies choosing to not export their products to the UK for fear of higher trade tariffs. As a result many are waiting until Brexit before they make an informed decision on whether to export their products there. Unfortunately Brexit is an external factor which is almost impossible to predict or influence and as a result it needs to happen before the overall effects of it can be evaluated.

Staff Shortages

Another problem many firms are suffering from is staff shortages.  This has come as a result of the growth of zero hours events companies. Many of these companies employ students and young adults en masse. These adults would normally be working in pubs and restaurants. However many find that zero hours contracts fit a lot better around their routine.  As a result of staff shortages many firms have to bring in staff from other sites in order to cope with demand.  One way in which we think bars and restaurants could reduce staff shortages is by more pro-active recruitment. This would mean recruitment days as well as flyers in the local area. Many Pubs and restaurants may only advertise online or by placing adverts within their workplace. However this severely restricts the amount of people that may see the job advert.

Changing Consumer Trends

Another important factor which needs to be considered by businesses within this industry is changing consumer patterns one of the biggest changes in consumer behaviour in recent years has been the UK’s appetite for Gin. In recent years gin sales have risen greatly and this has been in part due to the launch of different types of gin as well as and a changing in attitudes towards the drink. It has traditionally been seen as a drink for older people however the younger generation have been embracing it. In order to adapt to such changes it is important for bars to conduct market research into who they are targeting as well as change the way they market themselves in order to appeal to a wider audience. Promotion of drinks that are trending as well as themed bar nights have proven in recent years to be highly effective at attracting new customers into bars and restaurants.