Report: Widening gap between on-trade engagement and consumption
Market intelligence firm The Oxford Partnership has released its ‘snapshot’ of January 2026 for hospitality venues, which highlights what it called a “widening gap between engagement and consumption”.
Across the on-trade, engagement remained strong in January, with venue occupancy rising to 64.2% (from 62% the year before) and average dwell time remaining at 150 minutes – the height it reached in the festive period.
Additionally, the number of operating venues also remained broadly stable, which The Oxford Partnership said suggests that the post-Christmas contraction across the sector has been limited.
Average spend per head also reached a new high of £26.74, driven by higher operating costs and growth in ‘food-led occasions’ (with food spend per head rising to £31.85 from £30.88 the year before).
Meanwhile, drink spend more modestly increased (rising 37p to £21.23) highlighting the shift towards experience-led occasions rather than high-intensity drinking.
Overall intensity of drinking fell sharply from December levels, which can be attributed to seasonal moderation and the impact of dry January.
Compared with December, total volumes consumed in the on-trade also declined, falling 18.2% (reflecting the end of festive trading), although their year-on-year growth was 1.4%.
Alison Jordan, CEO of The Oxford Partnership, said: “January reflects a clear shift in how people are using hospitality venues.
“Consumers are still prioritising social experiences and longer visits, but they are drinking more slowly and more selectively.
“Engagement remains strong, yet operators are finding it harder to convert that footfall into volume and profit.”
Growth remains concentrated in a few segments of the market, including stout, which saw strong year-on-year growth and world lager and premium lager, which both posted modest growth.
Core lager, premium 4% lager and ale continue to face decline.
The Oxford Partnership added that operators and suppliers need to adapt to changing consumer behaviour in a market that is becoming more moderated and experience driven.
Jordan concluded: “The message for 2026 is clear. Venues that succeed will be those that maximise longer visits through food, premium products and strong experiences. With margins under pressure from rising costs, simply being busy is no longer enough.”
Picture Credit: Bridgesward on Pixabay
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