Festive trading fuels LFL sales of pubs and restaurants by 4.1%, study says
Weather conditions and an extended holiday period boosted the pubs’ and restaurants’ sales.
The six-week Christmas and New Year period has boosted the collective like-for-like (LFL) sales of pub and restaurant companies by 4.1%, with restaurants having a 2.4% growth.
According to a study by Coffer Peach Business Tracker of CGA, RSM and The Coffer Group, pubs saw the highest uplift at a 5.1% LFL sales increase against restaurants.
Businesses in London experienced a 5.0% LFL sales growth, as compared to the areas outside M25 at 3.8%.
“This is all in stark contrast to the gloom hanging over retail, which according to the British Retail Consortium suffered its worst Christmas for a decade with zero sales growth,” Karl Chessell, director of CGA, said.
“What these Tracker figures suggest is that consumers are being more selective about where they spend their money, and are looking for memorable experiences – like going out for a meal or drink with family or friends over Christmas – rather than just buying ‘things’,” he added.
Cheesell also mentioned that premiumisation had also boosted the results of restaurants as the number of covers also went up by 1.3% year-over-year.
“Premiumisation will be a big part of that, and trading-up appears to have helped restaurants too, as the number of covers served rose only 1.3% from last year,” Karl Chessell observed.
Additionally, head of leisure and hospitality at RSM Paul Newman said that weather conditions and an extended holiday period was really helpful to pubs and restaurants.
“That said, discounting is already picking up and we won’t know until later in the year if increased sales have converted to profit. This conversion level will be crucial for operators who continue to face rising costs and more cautious consumer spending,” he continued.
