Half of publicans not targeting under-30 market

Despite a third of their customers being under the age of 30, almost half of publicans are not doing anything to target the demographic.

AIB’s licensed trade report, launched today, sees attracting and being relevant to the 25- to 35-year-old market as a key challenge pubs need to address. To attract and keep more of that group and other demographics, it believes, small pubs in particular need to expand their service.

“The profile of the pub-going customer is changing,” the report read.

“Right now, approximately a third of the customers of the pubs we surveyed are aged under 30, a third are aged 30-50, and a third are aged over 50.

“The problem for many pubs is that their customer base is ageing and there is an insufficient intake of younger customers to maintain the age balance.”

It said attracting younger customers is particularly a problem for pubs with lower turnovers, where some 22% of customers are aged 60 and over, while for those with higher turnover the share is nearer 14%.

“The larger pubs also have a higher share of under 30s in their customer base [nearer 40% in some instances], which bodes well for their longer-term prospects, assuming they can retain such customers as they grow older.”

One of the key revenue generators identified by the survey was food service. The research showed the stronger pubs were expanding their food offering and seeing it generate a rising share of turnover. In Dublin pubs, 60% now offer lunchtime food, while 41% offer a Sunday carvery. Outside Dublin, 38% of pubs offer lunchtime food, while 29% offer a Sunday carvery.

Food was not the only factor required to improve fortunes. The report said food had to be accompanied by better service, entertainment, and a “compelling range of products”.

“Publicans have taken a number of initiatives to attract younger customers, including more live entertainment, theme nights, greater use of social media, and even a wider range of drinks,” the report said.

“That said, the fact is that 43% of the publicans we surveyed admitted that they are not doing anything to attract younger people to their pubs.”

How premises sell themselves is increasingly important. The survey found owners are smarter about using low-cost but effective means, especially social media. While Dublin pubs are more likely to use social media and websites, others are more likely to use local advertising and word-of-mouth promotions.

Padraig Cribben, CEO of the Vintners Federation, said: “A major challenge for pubs today is to remain relevant to those under 40. A very real concern for the sector is that we will lose a generation as younger people stay away, or simply come less often than before.

“The bottom line is that pubs have to give people a reason to go to the pub. This is a relatively new challenge for the trade.”