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Café-bars' all-day offer affords sector growth

Published:  05 November, 2012

Café-wine bars are making up a "disproportionate" amount of all new openings in the on-trade, according to CGA Strategy.

Café-wine bars are making up a "disproportionate" amount of all new openings in the on-trade, according to CGA Strategy.

They account for a quarter of all new outlets, with food-led venues making up a further 13%. Closures are still dominated by wet-led community pubs, which make up 56% of those venues shutting up shop.

London operator Drake & Morgan has proved it's one to watch, with a turnover of £16.4 million across five sites, all of which have an evolving offer in order to capture all-day trade. It has also confirmed two new openings for 2013.

Marketing manager Natalia di Palma said it puts customer needs first, by "creating spaces that [customers] can use at different times of day". It has worked closely with designers to ensure there are appropriate spaces for breakfast coffees, lunch, a drink with friends in the evening or more formal arrangements.

But the spaces will only work if the facilities and service are up to scratch, which is why all sites have wi-fi and all-day menus. Its wet/dry split is 70/30 but breakfast has become more of a business driver as workers "move out of the boardroom" for meetings, Di Palma said.

Another example of fast-growing café-wine bars is the Loungers chain, which opened Brasco Lounge earlier this week in Liverpool. It focuses on sites in secondary high street locations. It currently operates 26 sites and is planning on opening 10-12 more in 2013.

Other trends identified by CGA include a 10% increase in the number of spirits on back-bars, most of which is given over to premium brands. Cocktails have also benefited as consumers look for an experience they can't easily replicate at home - meaning bars offering cocktails (not specifically cocktail bars) have grown in number by 16%.

To read a full analysis of the sector, see this week's issue of Harpers.

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