Britain's hospitality sector sales grows by 1.5% in October
However, inflation is making sales significantly behind 2021 and 2019 in real terms.
October sales at Britain’s top-managed restaurant, pub and bar groups were 1.5% ahead of the levels of October 2021, the latest edition of the Coffer CGA Business Tracker revealed.
The Tracker, which is produced by CGA by NielsenIQ in partnership with The Coffer Group and RSM UK, also shows a growth of 4.3% from October 2019. The report said this means sales have beaten pre-pandemic comparatives for nine months in a row.
“However, with inflation now in double digits, sales are significantly behind 2021 and 2019 in real terms,” the Coffer CGA Business Tracker said.
Pubs were the strongest performing of the Coffer CGA Business Tracker’s three segments in October, with year-on-year sales growth of 6.4%. Restaurants endured a tough month with like-for-like sales down by 3.6% on October 2021, whilst bars’ sales slipped 12.7%.
London’s hospitality sector continued its recent rebound from more than two years of COVID-related upheaval, as tourists and workers steadily returned to the capital. Groups’ October sales within the M25 finished 6.4% ahead year-on-year—in sharp contrast to regions beyond the M25, where like-for-likes were up by only 0.3% from October 2021.
“It’s been encouraging to see hospitality sales running ahead of pre-COVID levels for nearly all of 2022. But after adjusting for the effect of higher prices it’s clear that footfall is down, and inflation means sales are even further behind in real terms. Sustained increases in energy, food, property and other costs are putting a very tight squeeze on both consumers’ discretionary spending and operators’ profits, especially in restaurants. The sector must now pin hopes on a strong festive season to make up some of the growth that has been lost over a variety of unprecedented challenges,” Karl Chessell, Director of Hospitality Operators and Food, EMEA at CGA said.
CGA collected sales figures directly from 75 leading companies for the latest edition of the Coffer CGA Business Tracker.
