Business intelligence company Lumina, known for its insights into the food and drink markets, recently revealed the latest findings from the Lumina Menu Tracker.
The research confirmed that pubs are reducing their menu offerings in the face of increasing cost pressures, with limited means to absorb such costs.
Lumina’s data showed that pubs are trading off variety for operational efficiency, attempting to eliminate waste, protect profits, and increase the speed of service.
The rise in cost pressures is confirmed by the Australian Bureau of Statistics’ latest figures, which show an increase in foodservice price inflation of 2.9 per cent in the twelve months to May.
Similar figures are found in the UK market, where the inflation is attributed to rising energy costs, persistent supply chain issues and global market volatility.
In Lumina’s research, respondents have focused on dishes where value perception is clearer and demand is stronger, with fish and chicken dishes, burgers and fries topping the list.
Increasingly, in an effort to counteract losses, lower priced items are being added to pub menus to encourage incremental spending.
Pubs are now also more likely to offer additional attractors at different times of day, such as indulgent desserts during the afternoon.
However, while these moves can be successful, the research also showed an increase in consumer price sensitivity.
As pubs adapt to economic challenges, balancing value with experience remains key to staying competitive.
