SCOTLAND’S bars, restaurants and leisure clubs could make a further £437 million per annum by adapting opening hours to changing working patterns, according to a new report from Barclays.
As the traditional 9-5 working day becomes less and less common, the times at which people want to go to the pub, grab a meal or work out at the gym are changing with the new report showing that although over one-quarter of UK hospitality and leisure businesses recognise this growing demand, opening hours are not keeping up with changes to modern working lives.
The report revealed that one-quarter of workers across the UK would now like to go to a museum in the evening (between 6pm-11pm), over one in 10 (13%) film fans would choose to go to the cinema in the small hours (11pm-5am), and almost one in five (19%) late-night diners would choose to get a takeaway after closing time (11pm-5am).
By responding to these changing demands, the British hospitality sector could benefit from a further £6.75 billion a year in increased revenue – £437m for Scotland.
The new Barclays Corporate Banking Hospitality and Leisure report, Open All Hours? found that only one-quarter (28%) of Scots now work traditional 9-5 hours, with nearly one-fifth (17%) saying they need different opening hours.
It also found that more than one in 10 Scots (13%) expect 24-hour hospitality services. By responding to this demand, Scotland’s restaurants (£126m per annum), takeaways (£144m), and pubs, bars and clubs (£99m) could benefit the most.
Jamie Grant, head of corporate banking for Barclays in Scotland, said: “Adapting to changing consumer demand presents a substantial opportunity for Scottish businesses.
“Our research has shown that leisure operators across the country could access a staggering £6.75bn per annum by accommodating their customers’ evolving needs which have been brought on by changing working patterns. While that may be a challenge for some providers, understanding the value of the opportunity makes the prize more tangible.
“The current leisure environment does present a number of challenges for the sector’s businesses – the labour supply is challenged by Brexit, rent increases and food inflation are all set within the context of an incredibly competitive market which is already heavily discounting.
“However, those that don’t adapt to this type of newly developing consumer demand risk being left behind and in this ever-competitive environment, businesses need to weigh up the value of the long-term opportunity over the cost of the short-term investment.”