Why Your Local Pub Might Be a Better Bet Than the Stock Market
Okay, hear me out—this is wild. While everyone’s been obsessing over tech stocks and crypto, Britain’s pub chains have been quietly crushing it. I mean, who saw that coming? Over the last three months, big names like Young’s and Fuller’s have left the FTSE 250 eating their dust. And honestly? It makes perfect sense when you think about it.
The Numbers Don’t Lie
Let’s break it down. Mitchells & Butlers, Marston’s, City Pub Group—all up 12-18% this quarter. Meanwhile, the FTSE 250’s limping along at 3%. That’s not just a gap, that’s a full-on demolition. And before you say “fluke,” remember: this is after two years of lockdowns nearly killed the industry. Talk about a comeback.
Here’s the thing—people aren’t just going back to pubs. They’re going hard. It’s like we’ve all collectively decided to make up for lost time. Barclaycard says spending’s up 24% from last year. Which, honestly? Feels low based on how packed my local gets on Thursdays now.
Why Pubs Are Winning (And It’s Not Just the Beer)
1. We’re All Sick of Being at Home
Remember “revenge travel”? Well, meet “revenge drinking.” After being trapped with sourdough starters and Zoom happy hours, people will pay stupid money just to sit in a slightly sticky booth with friends. It’s not rational—it’s emotional. And emotions move markets.
2. Nobody Wants Cheap Crap Anymore
Gone are the days of £2 pints of questionable lager. Now it’s all about small-batch gin with “locally foraged botanicals” or whatever. Pubs figured this out fast—premium drink sales are up 30% in some places. My mate Dave (who “knows a guy”) put it best: “People don’t buy drinks now, they buy Instagram stories.” Harsh but true.
3. They Got Lean While We Weren’t Looking
Lockdown forced pubs to get creative. Apps for ordering, algorithms for staffing—some chains run tighter operations than my last startup. One CEO told me they’re making more profit now with fewer staff. Not sure if that’s impressive or depressing, but it’s working.
4. Staycations = Pub Windfall
With airport chaos and the pound in the toilet, everyone’s holidaying in Cornwall instead of Corfu. And what’s in Cornwall? Pubs. So many pubs. Even city centers are benefiting—turns out people actually like their neighborhoods when they’re not just commuting through them.
5. They Played the Real Estate Game Perfectly
While we were panic-buying toilet paper, smart pub groups were snapping up properties for pennies. Now those dingy old boozers are fancy gastropubs in commuter towns. Mitchells & Butlers opened a dozen new locations last year alone. That’s some big-brain timing right there.
What This Means For Your Wallet
Two big lessons here: First, never underestimate how much people will spend to feel normal. Second—and this is key—the best opportunities often look obvious in hindsight. Like how everyone “knew” Amazon would dominate, but few actually invested early.
But Wait… It’s Not All Sunshine and Ales
Energy bills are insane. Staff want actual living wages. And if inflation keeps biting, those £8 craft beers might start looking less essential. There’s a real chance this party could end with a hangover.
Bottom Line
This isn’t just about pubs—it’s about watching where people actually spend their money, not where analysts think they should. The next big opportunity? Probably somewhere equally obvious that we’re all ignoring right now. Maybe bowling alleys? (Kidding. Probably.)
Anyway, next time you’re in a pub, look around. That buzz you’re hearing? That’s the sound of an industry outsmarting the market. Cheers to that.
Source: Financial Times – Companies
