UK managed restaurants, pubs, and bars sales inches up 6.9% in April

Inflation however offset this growth.

Britain's leading managed restaurant, pub, and bar groups demonstrated robust performance in April 2023, achieving a significant year-on-year (YoY) sales growth of 6.9%, according to the latest Coffer CGA Business Tracker. 

This marks the seventh consecutive month of positive results for the Tracker, produced by CGA by NIQ in partnership with The Coffer Group and RSM UK. The growth observed in April far surpassed the previous month's figure of 1.4%. However, despite this positive trend, the current growth rate remains lower than the prevailing inflation rate, and rising costs continue to impact both consumer spending and business margins.

The surge in April trading was primarily attributed to public holidays, including Easter and the early May Bank Holiday weekend. Favourable weather conditions also played a role in attracting consumers to pubs, where like-for-like sales exceeded April 2022 figures by 8.1%. The restaurant sector experienced slightly lower growth at 7.6%, while bars encountered another challenging month with a decline in sales by 9.1%.

London's managed groups continued their strong post-COVID recovery, with April sales increasing by 10.4% compared to the previous year, just ahead of inflation. Outside of London (beyond the M25), growth stood at a solid 5.8%.

Karl Chessell, director - hospitality operators and food, EMEA at CGA by NIQ, highlighted the impressive resilience and appeal of the managed restaurant, pub, and bar groups in a highly demanding market. He emphasized the sustained recovery in London, acknowledging the toll imposed by COVID restrictions on the hospitality sector. Although consumers exhibit a clear eagerness to dine and drink out, real-terms growth remains challenging due to high inflation.

Mark Sheehan, managing director at Coffer Corporate Leisure, observed that eating and drinking out sales continue to lag behind inflation. Whilst pubs and restaurants experience sales growth, much of it is attributable to price increases. He noted the sector's innovative nature and intense competition, with inflation potentially leading to further inflation. Operators must strive for sales that keep pace with costs, and volume expansion is crucial. While improvements are evident, the desired progress is yet to be fully realized.

Paul Newman, head of leisure and hospitality at RSM UK, noted the positive impact of a full month without train strikes on central London pubs and restaurants, resulting in over 10% like-for-like sales growth, a first since the end of the pandemic. Although cost pressures may be easing, they remain a concern, and uninterrupted trading is vital to capitalize on rising consumer confidence. Operators are hopeful that forecasted sunshine for the rest of the month will salvage what was optimistically referred to as a "mega-May," following a dampened Coronation weekend.

The Coffer CGA Business Tracker gathered sales figures directly from 75 prominent companies, providing valuable insights into the performance of the industry.