The most dynamic growth in the UK’s foodservice sector is coming from managed pubs, according to a new report from Horizons, handing fresh produce suppliers a market opportunity.

With alcohol sales on the wane, pub restaurants have clearly become canny at plugging the gap with their food offer providing fresh produce suppliers with opportunities.

Keen pricing, effective marketing and a broadening of their offering to appeal to a wider audience are the main reasons behind the rise of managed pubs according to Horizons.

The report finds that managed pub restaurants now hold a 22 per cent share of the UK’s eating-out market which includes pubs, restaurants and quick-service outlets. This figure is up from 18 per cent in 2008. Horizons expects this share to rise to 26 per cent by 2016.

The managed pub restaurant sector consists of almost 17,000 pubs and has combined food and associated beverage sales worth £4.8 billion in 2012, 39 per cent of their total sales. Leading operators include Mitchells & Butlers, JD Wetherspoon, Whitbread, Greene King, Spirit and Marston’s.

Horizons has found that the sector has been able to increase its share of food sales by adjusting successfully to changing consumer

demand. Breakfast, for example, has become a growing revenue stream, accounting for six per cent of all managed pub meals, with sales now worth £280 million a year.

Sales of midday meals – both weekdays and weekends – have also increased substantially, growing in value from £855m in 2006 to almost £1.5bn in 2012.

Horizons managing director Peter Backman said: “Consumers are choosing to eat in pub restaurants over other types of restaurant and this trend is likely to continue over the next few years. 'Managed pubs are doing a brilliant job at appealing to today’s consumer by being flexible in their offer and price sensitive.”

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