Live music in pubs and bars can be a catalyst for growth

It’s no secret that the hospitality sector has faced unprecedented challenges that have had a damaging impact on the industry. From lockdowns during the pandemic to record high operating costs, not to mention inflation and interest rate rises squeezing consumers’ pockets, the past few years have been the most challenging operating environment for hospitality venues we’ve witnessed in living memory.

It’s been equally tough for artists. Prior to the pandemic there were around 70,000 gigging musicians in the UK, today it’s estimated there are around 43,600. The sad reality is that for many of the 26,400 musicians who left, there simply wasn’t enough work to reliably earn a living gigging.

But as thousands of venues across the hospitality industry were pulling down their shutters and musical instruments were left gathering dust in cupboards, in late 2022 there was a resurgence of live music in the hospitality sector.

Driven by the launch of live music marketplaces, empowering artists and venues to connect at scale, tens of thousands of new opportunities in pubs, bars and restaurants have been created in towns and cities across the UK.

At GigPig, we define this as the ‘seed’ music industry. Of the estimated 43,600 musicians active in the UK, more than half (56%) regularly perform in the seed music scene according to industry-wide report the Live Music Index.

Why is that of note for the hospitality sector? Well, our findings revealed that if all eligible licensed venues offered live music to customers then £2.4bn would be added to the hospitality industry annually. That’s an astonishing figure, but when you consider that gigging increases dwell time by 61%, spend per visit by 64% and venue sales by 33% it’s easier to see how this stacks up.

I previously worked in the on-trade for drinks brands Asahi and Red Bull, regularly speaking with venue operators about their challenges and opportunities. Aside from having a compelling food and beverage offer, entertainment was high on the list of must-haves.

The research demonstrates to me that the hospitality and music industries need to work together to mutually benefit. Artists have to be more accessible for busy hospitality operators to make the most of the revenue boosts that live music can offer. This means booking music has to be affordable and straightforward for operators. And that can only happen by the music and hospitality industries working closer together to reduce pain points and celebrate wins. This is something we’ve been working hard to deliver. Through making it easier for venues to book live music and artists to get gigs, we’re seeing a dramatic growth of live music in the hospitality sector: nearly nine out of ten venues (87%) are planning to increase their live music offering over the next 12 months to improve the atmosphere and customer satisfaction, increase revenue and footfall and support local artists.

Indeed, I think this is the birth of an entirely new category. One where hospitality venues can access thousands of artists, with the ability to discover and book local talent at their fingertips. Not only does this give every pub or bar the opportunity to become a stage, but importantly it means artists will get more gigs, with faster and more reliable payments.

Of course, it’s not all plain sailing. Current barriers for venues, as outlined in the Live Music Index, include 56% of operators saying they don’t have time to source and book; while 47% called for transparent pricing and contracts. The industry will only reap the rewards that come with the size of the seed music prize if they have solutions.

Local is key here. Local artists help pubs, bars and restaurants to make their venue standout in a bustling night time economy. There’s much talk about how music has the ability to bring together towns and cities like nothing else. Looking towards Liverpool as just one example, creating stand-out experiences around major events such as Eurovision or Taylor Swift has benefited the whole night time economy. There’s no reason that the seed music industry shouldn’t capitalise in pubs, bars and restaurants all year round.

It also needs to be recognised that the seed music industry feeds the talent pool for the ‘grassroots’ industry, giving thousands of artists gigging and rehearsal time to give them the chance to build up to playing bigger venues. Getting a music offer right will help to turnaround the futures of seed venues.

And in a world where sadly 125 UK grassroots venues closed in 2023, there is also a gap in the market where artists readying to perform in these should be able to find more opportunities in seed venues given the chance. This is not to take away from the amazing grassroots venues, which absolutely need more financial support and backing from the government in the midst of crippling costs. The hospitality and music sectors cannot rest in getting grassroots venues thriving again: the ecosystem is lost without them.

As the hospitality and live music sectors continue to face challenges, the mission to help every pub and bar maximise their potential with live music is more important than ever.

• GigPig is a hospitality music marketplace and booking platform, connecting venues and artists to live music and entertainment bookings