Global Bar Report 2024: Europe – The Spirits Business

Despite still struggling with the shockwaves of the Covid-19 lockdowns and the cost-of-living crisis, bar owners in Europe are feeling positive.

*This feature was originally published in the November 2024 issue of The Spirits Business magazine.

As in previous years, the bar industry in Europe is still picking itself up from the fallout of the Covid-19 pandemic, and the light at the end of the tunnel could still be some distance away yet.

Speaking about the health of the industry in Europe, Dimitris Dafopoulos, co-founder of Athens bars Line and Walk In, says the sector has been “between clashing rocks for some time now”. He explains that inflation and energy rates are burdening operational costs, while he’s also noticed a “significant slowdown in spirits consumption across Europe, for a variety of reasons”.

In the UK, sales in bar chains declined for eight consecutive months (from January to August) according to CGA data, and pub and bar insolvencies were up by 30% in the past year, which is attributed to drinkers reducing their spending because of the cost-of-living crisis. The Euro 2024 football championship provided a much-needed boost for summer trading across the continent, but it’s hardly sufficient to save the industry year-round.

Jack Sotti, of Archive & Myth bar in London’s Hippodrome, adds that the industry is “pretty brutal at the moment. Especially recently, in regards to the late-night scene, we’re seeing a lot of club closures every month. Unless there’s a significant government change in policy, we’re going to see a mass extinction of the UK nightclub scene, which is really brutal.”

The Night Time Industries Association has calculated that by 2030 there could be no nightclubs left in the UK. While inflation is wreaking havoc for consumers and businesses alike, Sotti doesn’t believe decreased spending power spells disaster for the on-trade. He uses Three Sheets (which opened its second venue in London’s Soho in March) as an example: “It offers a cocktail menu that’s around £15 (US$19) per cocktail. People are drinking less and better so, in turn, spending less. Prioritising little luxuries is a trend I’m noticing alongside the cost-of-living crisis, with people still wanting to go out and have a nice time.”

Industry excitement

It’s not all doom and gloom in Europe, however. Bar Convent Berlin (BCB) showed there is still much excitement in the industry for 2025. Beyond cocktails, education in the bar was a hot topic at this year’s edition, which welcomed more than 15,000 guests.

Giovanni Allario, head bartender at Milan’s Moebius, has seen this education push first hand at the seminars and conventions he has attended this year. “I felt this hunger for knowledge and curiosity that overshadowed the raw need for parties,” he says. “There’s been a gap during the pandemic, and we’re still living with the difficulties of it, but this also gives new generations the chance to step up and embrace opportunities. It gives me hope for the upcoming years.”

Sotti says bars are investing a lot more in training and education, which he thinks is great but it does have a financial impact.

For Dafopoulos, finding the right people for the job is tricky. He says: “Finding adequately educated and experienced staff seems to be puzzling us, especially since we increased our headcount by almost 30 people during 2024 and before summer, when tourism was exploding in Greece.”

Recruitment is the main issue for Allario, too. He reasons that “there’s a gap in the generations that approached this industry in the past four years that we’re struggling to fill in terms of education and availability”.

Staffing has long been a problem for the whole hospitality industry, but there are signs of improvement in the UK. At London’s Luum, which opened in October, general manager Stefano Chila was concerned about recruitment, but has since received enough applications for all junior and senior roles.

Making bars a more appealing place to work is key – and it’s a challenge that’s been taken on by The Cambridge Public House in Paris, which became B Corp-certified this year. Co-founder Hugo Gallo says the journey was “rewarding, regardless of how many hours we put in. We sorted out the company, looked at staff retention and happiness – things that are invaluable.”

Another key part of The Cambridge’s B Corp application was environmental sustainability. In Athens, Dafopoulos believes that is the “most prevalent trend in hospitality. It’s more important than it has ever been. Climate change and our carbon footprint leave no room for negligence.” Both Walk In and Line share the same sustainability programme.

Dafopoulos also wants to see a focus on mental health: “There is an ongoing discussion that creates awareness of mental health and the general wellbeing of employees in the hospitality industry.

I believe that more transparency on working conditions and measures taken are for the greater common good of our industry.”

Trend-wise, Allario adds that “people are searching for some amusement, be it the show in the drinks, the bartenders’ personality, or the music and atmosphere”. There’s a demand for more than simply serving a great drink.

While the trading environment is tough, Sotti is upbeat, pointing to the introduction of BCB London as a great move: “From an education point of view, it’s some of the best in the world. I think 2025 is looking good, with a few new openings and with Soho being vibrant again, I’m feeling optimistic.”

Bars to watch in 2024

Archive & Myth, London, UK

Despite its best efforts to be a ‘secret’ bar, Archive & Myth couldn’t help but be the talk of the town when it opened in London’s Leicester Square in the summer. Once past the password-protected door, guests are made to feel a world away from the bustle above. Cocktails are divided between ‘miniature’ and ‘major’, with bar consultant and mixologist Jack Sotti behind the creations. For the little drinks, there’s the Sazerac de Nata, a play on the Sazerac via the Portuguese pastry, while on the large side, a modern interpretation of the Absinthe Frappe (said to have been invented in the late 1800s) goes down quickly with its blend of condensed milk, basil, mint, lime and absinthe.

Devil’s Cut, Madrid, Spain

Opened in October, Devil’s Cut marked Shingo Gokan’s first foray into Europe. The globetrotting bartender is known for his acclaimed venues in Asia (Tokyo’s SG Club and Shanghai’s Speak Low, for instance) and his time in New York (where he was head bartender at Angel’s Share for 10 years, and this year opened Sip & Guzzle). In Madrid, his team has split the menu into three parts: Angel’s Classics, The SG’s Favourites, and Devil’s Signatures. While the first two draw from Gokan’s greatest hits, the latter is inspired by his trips to wineries in Jerez, and his fondness for Sherry – using the fortified wine in cocktails such as the Jamón Ibérico Fashioned.

Walk In, Athens, Greece

Strengthening Athens’ growing reputation for being a major cocktail city, the team behind Line opened a sibling bar in the summer. Walk In operates under a sustainability programme, where everything is made from scratch and in-house. Cocktails are batched at Line, where they’re poured into nine-litre kegs and transported to Walk In, reducing the need for recyclables like glass and vacuum bags. The space itself, industrial-chic in design, is an intriguing proposition whether day or night, backed by a casual, airy atmosphere and soundtracked to vinyl. Standout drinks include a Paloma that partners Three Cents pink grapefruit soda with Sichuan spice, and a Greek twist on a Penicillin, made with Metaxa 12 Stars.

Related news

UKHospitality warns of ‘significant’ job cuts

Glass half full: evaluating the global bar scene

Cocktail Stories: Vodka y Soda, Superbueno