The pub market - France

1.2 Global market

The drinks market is particularly well-developed around the world, with a large number of small players, independent or franchised distributors and retailers, working with some of the world's leading producers (***).

The on-trade market - businesses whose main activity (***) is the sale and consumption of alcoholic beverages on the premises- is very spread out and difficult to segment. Many establishments, registered as public houses, generate a significant proportion of their sales from products other than alcoholic beverages, such as restaurants and discotheques. Legislation varies widely around the world, and the segmentation of these establishments depends on national law.

In ****, the global sales of the drinks industry are estimated at US$***.* billion.before theCOVID-** pandemic, which had a major impact on the industry, there were around ** million restaurants, bars, pubs and cafés in the world, *% of themin the United States. [***]

Evolution of sales in the global drinking establishment market between **** and ****. Global, ****-****, $bn Source: ****

While the market had been growing steadily for many years, the COVID-** crisis froze growth in the pub market and impacted the industry's sales figures. Exceptional drop in sales in **** and return to growth from **** levels from ****. The same growth is expected in ****.

Forecast sales for the ...

1.3 Domestic market

The on-trade market has seen steady sales growth since the ****s. In ****, the drinks market had a record year, with sales exceeding ** billion euros. In ****, there were more than **,*** drinking establishments throughout France. [***]

Evolution of sales in the French drinking establishments market between **** and ****. France, ****-****, € bn Source: ****

Comparing sales growth in the French on-trade market with sales growth in the sector in ****, re-evaluated each year at the rate of inflation, we can observe overall growth in the sector over the past ** years.

From the early ****s, the drinks market enjoyed steady growth of between *% and *% a year until ****. Between **** and ****, the market experienced very strong growth, with **% growth every year for * years.

This growth was brought to a sudden halt by the COVID-** health crisis in **** and ****. As the drinking establishment market is closely linked to social interaction and festive outings, this period of restriction was particularly damaging for the sector.

However, the market benefited from the summer openings in **** and ****, which kept the players in the French on-trade market afloat.

The year **** marks spectacular growth for the French on-trade market, with historic sales of **.** billion euros. This sales figure, well ahead of those for **** and **** as well as those ...

1.4 The impact of COVID-19

As we saw briefly in sections *.* World market and *.* French market, the drinks market was severely impacted by the COVID-** pandemic. The sector as a whole experienced a forced drop in demand, which caused the market to collapse.

Detailed sales trend in the French public houses market ****-**** France, September **** - November **** ,Sales index base *** in **** Source: ****

The graph below shows a drop in the sector's sales from March ****, corresponding to the first confinement. This is followed by a sharp rise in sales when the pubs reopen for the summer. By October ****, COVID-** contamination figures were once again skyrocketing, and the return of the health crisis forced the authorities to set up a new lockdown and take far-reaching measures, including compulsory masking and drastically curtailed social interaction.

All drinking establishments have suffered greatly from the COVID-** crisis, which is why the government has set up exceptional aid for drinking establishments. The Bar Solidarity Fund will enable all pubs and discotheques that have lost more than **% of their sales between March **** and March **** to benefit from a grant of** ,*** or **% of their reference sales, which must be less than €***,***. Drinks outlets have also been able to benefit from state-guaranteed prices and partial ...

2.1 Portrait of drinking establishment customers

The COVID-** health crisis made the French aware of their attachment to pubs, cafés and bars.it would seem that this period of restraint has rekindled the French people's love for these social establishments.in fact, **% of French people believe that frequenting these establishments is the epitome of the French art de vivre.

Proportion of French people attached to drinking establishments France, ****, %, %, %, %, %, %, %, %, %, %, %, % Source: ****

Pubs are a well-established market in France, as evidenced by the attachment of the French to these establishments. Half of French people have a strong attachment to these establishments. this attachment is particularly strong in the Paris region, where six out of ten French people say they have a very strong attachment to cafés, bars and pubs. parisians are also the most frequent visitors to drinking establishments (***), with Parisians visiting drinking establishments an average of ** times a year. Source: ****

French pub-going survey France, April ****, % Source: ****

According to a survey commissioned by France Boisson from the IFOP polling institute, **% of French people go to drinking establishments at least once a year. A further **% go regularly (***).

Customer loyalty to drinking establishments France, April ****, % Source[***] Even if they have a preferred establishment, the majority of French people tend to ...

2.2 Changing behaviors, towards a reduction in alcohol consumption

By definition, public houses are places where customers can buy and consume alcohol. However, overall alcohol consumption in France has fallen sharply over the past twenty years, while sales in these establishments have continued to rise. These establishments are therefore focusing on diversifying their menus, and are now offering a wide range of non-alcoholic drinks to meet customer demand.

Proportion of household beverage budget spent on alcoholic and non-alcoholic beverages France, ****-****, % (***) Source: ****

Over the past twenty years, the proportion of household budgets devoted to alcoholic beverages has been declining in favor of non-alcoholic beverages. This reflects a general awareness of the dangers of alcoholic beverages. As a result, establishments in the drinks market have had to adapt to diversify their offerings in line with this trend.

Breakdown of household beverage budgets France, **** ; **** ; **** ; **** Source[***] If we look at the evolution of the beverage budget every * years between **** and ****, we can see that the budget devoted to strong spirits has fallen, while their cost has risen sharply over the same period. Champagne, cider and wine budgets lost many points, while soda and juice budgets increased. Alcohol consumption **** - **** France, ****-****, liter/person/year Source[***] Looking at the evolution of alcohol consumption in ...

2.3 French attachment to drinking establishments

According to an IFOP - France Boisson survey, the French have a particular attachment to the terraces of bars, cafés and restaurants. **% of those polled consider that drinking establishments are part of the French art of living. And **% consider these places to be places for socializing and sharing.

The main reasons why the French frequent the terraces of drinking establishments France, April ****, % Source: ****

There are many reasons why the French are so fond of these establishments: first and foremost, they like to share a moment with friends and family, and drinking establishments are often seen as a convivial place for sharing. It should also be noted that there are many other reasons (***) for visiting a public house: taking time out, meeting new people, having an afterwork session with colleagues, listening to music, working outdoors... All these other reasons, though in the minority, underline the French people's multiple interests in these establishments.

When asked what they associate with drinking establishments, **% of French people associate them with happiness, a break in their daily lives, or a moment apart. They also mention the circumstantial importance of these moments, and tend to associate pubs with weekends, vacations and summer.

3.1 Jobs in the French drinking establishment market

The beer market alone will employ *,*** people directly and more than ***,*** indirectly by ****. [***]

Pubs are directly responsible for sales and marketing, and the industry hires many people on long-term contracts, as well as many seasonal workers on short-term contracts and student contracts. By ****, the on-trade will be hiring over **,*** permanent staff, a figure that has been rising steadily, signalling the market's good health. It should be noted that this figure is historic, and that by the end of **** (***), the sector had fully recovered from the crisis and continued to hire.

Number of employees in the sector France, ****-****, number of branch employees Source: ****

Since the mid-****s, the number of employees in the drinking establishment sector has risen steadily, with the exception of ****, when the COVID-** slowdown took hold. By the end of ****, the sector had regained its dynamism and reached an all-time high of **,*** new hires in ****.

By the summer of ****, the hotel and catering industry was facing major difficulties in recruiting new staff and finding all the employees who had had to leave the industry after the health crisis.

3.2 Beer and Coffee Production

Coffee and beer are the beverage outlets' flagship products.

Beer production in France (***):

AB inBev, Heineken and Carlsberg dominate the French beer market. In French supermarkets, Heineken has a **% market share by value. The Dutch brewer has * breweries in France , producing over *.* million hectolitres of beer a year . [***]

The group also relies on a portfolio of strong brands (***) to dominate beer sales in France. Heineken also controls the France Boissons distribution network, through which it supplies over **,*** foodservice customers.

With * million hectolitres of beer brewed annually at its Obernai site (***), since the group has no brewery in France .

Weight of French beer leaders France, ****, billions of euros (***) Source: Companies Annual Report, Heinekein Annual Report this graph shows the groups' worldwide sales. In France, Heineken and Carlsberg are the leaders.

Coffee production and processing in France (***) :

Although France is not a coffee-producing country, it does have a processing and packaging sector.

The number of companies in this sector is rising slightly in France (***). This is due to the fact that the market remains highly concentrated, creating tough competition that leaves few opportunities for new players. Number of coffee processing companies France, ****-****, in number of units Source : Acoss We can see that ...

3.3 Independent and franchised pubs.

Historically, pubs have been independent establishments, offering a wide choice of beverages that vary greatly from one establishment to another. Historically, independent establishments have been the main players in the pub market. New players are emerging, and just as in the restaurant business, pub franchises are also emerging in France.Franchising offers many advantages, but also some disadvantages for pub owners.Advantages of franchising:- The franchisee doesn't have to build a brand image or invent an innovative concept to stand out from the crowd. - Transmission of the brand's know-how, and ongoing assistance from the brand in the creation of the franchise. The brand is a resource for entrepreneurs wishing to open a drinks outlet. - Start-up at full speed: the brand has already built up a customer base that will soon be visiting the new establishment.- Reduced risk of failure: the concept is known and has worked, since the brand can afford to create franchises, so failure is much less likely than for an independent establishment. - Brand networks offer large-scale supply solutions, so branded establishments can benefit from an established distribution network and often advantageous prices.

Advantages of being independent:

- The initial investment for independents is ...

3.4 Size of drinking establishments

The market for drinking establishments is evolving. Initially, it mainly concerned small establishments able to welcome a small number of customers.today, establishments are tending to grow in size, and to increase their capacity. This increase in capacity implies an increase in the number of employees needed to serve customers.

Change in number of employees per outlet France, ****-****, number of employees per outlet Source: ****

The number of employees per establishment has risen from *.** in **** to *.** in ****, a very significant increase in ** years. This figure reflects an increase in the capacity of drinking establishments, which are larger, can accommodate more staff and therefore need more personnel. [***]

4.1 Distribution of drinking establishments in France.

If the French consider public houses to be part of the French art de vivre, it's because public houses can be found all over France. In ****, there were over **,*** public houses in France, including *,*** in Paris alone, representing *.*% of all public houses in France.

Growth in the number of public houses in France France, ****-****, number of establishments in the sector Source: ****

After a decline in the number of pubs in the late ****s, the number of establishments in the sector will increase rapidly between **** and ****. This increase is consistent with a similar trend in hiring in the sector.

This map shows the distribution of drinking establishments in France in ****, with the city of Paris leading the way with *,*** outlets, followed by the Nord and Bouches du Rhônes departments. The number of outlets is also higher along the coast and around the Lyon region. However, it's only natural that some departments with smaller populations should also have fewer drinking establishments.

This map, showing the number of pubs per **,*** inhabitants, shows the spread of pubs in France, and identifies the regions with the most and the fewest. It should be noted, however, that sparsely populated areas have been removed from the ...

4.2 Average pub prices in France

Prices offered by drinking establishments vary widely, depending on the time of year, the time of day and the location of the establishment. For example, drinks outlets regularly offer Happy Hours, a period between *pm and *pm when part of the menu is less expensive, a practice specific to alcoholic beverages. The price of coffee also varies, with coffee consumed "at the counter", which does not allow the customer to sit down at a table, often being a cheaper option for the customer.

The city with the highest prices in France in **** is Paris, with coffees costing an average of €*.**, and pints of lager averaging €*.**. Coffee is the flagship product of drinking establishments, and a product with a very high margin. In ****, the material cost price (***) of a medium-superior quality coffee was €*.**, and this same coffee was then sold to the customer for €*.** by the chain that communicated its prices. This product therefore has a margin of + ***%, as terrace coffee is often one of the main sources of revenue for pubs. [***]

Prices are higher in the Paris region, due to the higher cost of living there compared with other French cities.

4.3 Market trends, prices, concepts and chains

The pub market offers many opportunities for owners to come up with original concepts for their pub. There is a wide variety of bar, café and restaurant concepts. Examples include classic bar concepts such as beer bars with a wide variety of products, wine bars, vodka bars, whisky bars, etc. More original bar concepts also exist, such as cat bars, juice bars or theme bars. One example of the latter is the Barberousse chain, a pirate-themed bar.

Restaurants can also offer a wide variety of concepts, such as blind restaurants or cultural restaurants.

The concepts that work best today, and which enable the creation of chains and franchises, are the Bar/Brasserieconcept, offering Beer/Burger during the day and evening, and breakfast and coffee in the morning. Numerous chains have established themselves in this niche, while the bar market is dominated by small independent establishments offering only drinks and a very slim menu. The biggest players in the beer and burger segment are the Lille-based chain : Les Trois Brasseurs, the Lyon-based chain : Ninkasi and London giant : Hard Rock Café. Numerous smaller establishments are also positioning themselves in this niche in towns and cities across France, some of them affiliated with major ...

5.1 Restaurant and liquor license

Drinks outlets are restaurants selling alcoholic beverages. The activity of selling alcohol may be minor or major, and these establishments fall into the "Débit de Boisson" category. These establishments must hold a license in order to obtain a permit to sell alcoholic beverages. It should be noted that temporary establishments (***).

To obtain a Licence III or a Licence IV, a number of conditions must be met: be of legal age, not under guardianship, not have committed a common crime or pimping. Common crimes such as theft, swindling or breach of trust prohibit operation of the license for five years.Licenses III and IV cannot be issued by local authorities if there is already more than one licensed establishment per *** inhabitants. Licensees must attend a **-hour training course. Licenses are valid for ** years and are renewable with a *-hour training course.

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5.2 Regulations: Alcohol, Food, Hygiene, Safety

Drinks outlets are subject to a number of regulations concerning the display of drinks, the protection of minors and consumers in general:

The establishment's license must be displayed. Prices of food and beverages must be clearly displayed on menus and inside the establishment, and free fresh or tempered drinking water must be clearly marked on the premises. Prices, origin and capacity of alcoholic beverages must be clearly displayed, either on the same menu or on a separate menu. Non-alcoholic beverages must be displayed inside the establishment in the same way as alcoholic beverages, and exceptional discounts, such as Happy Hours, must apply to the entire menu, including non-alcoholic beverages. It is strictly forbidden to sell or offer alcohol to a minor, and the ban on sales to minors must be prominently displayed in the establishment. Smoking is strictly prohibited inside drinking establishments, and must be adequately posted on the premises.

All hygiene-related operations, from food handling in the kitchen to the distribution of finished products, must comply with rules governing premises, materials, utensils, products and their storage.

Premises must be laid out in such a way that employees and customers have access to sanitary facilities away from storage areas, kitchens and ...

6.1 Player segmentation

• Hard Rock Café France
• Trois Brasseurs (Agapes Restauration)
• Carlsberg
• France Boissons
• Anheuser-Busch InBev
• V and B
• Heineken Entreprise France
• Ninkasi Brasserie