Restaurants, pubs’ January sales up 3% on pre-COVID-19 levels
Regions are “in good growth” whilst London remains in the red.
An uptick in consumer confidence about safety and the easing of COVID-19 restrictions contributed to Britain’s managed pub, bar, and restaurant groups getting a modest increase in sales in January.
The Coffer CGA Business Tracker revealed groups’ total sales in the first month of 2022 were 3% higher than in January 2019, representing a solid recovery from December when COVID-19 measures were in place and sales fell 11% below 2019 levels.
Restaurants were the strongest performers, recording 4% growth versus January 2019, whilst pubs were up 2%. However, bars saw sales slip 3%, as vaccination pass requirements and lingering concerns about crowded venues dented late-night visits.
Similar to recent months, trading was weaker in London than elsewhere in Britain. Sales beyond the M25 were up by 6% on January 2019, but dipped 8% within it.
“After a bleak December for managed groups, January brought a reasonable revival. Growth for restaurants was particularly encouraging, and the challenging London and late-night markets should hopefully pick up as people return to offices and COVID-19 restrictions wind down,” Karl Chessell, director - hospitality operators and food, EMEA at CGA, said.
“However, it’s important to note that sales growth remains below inflation. With some businesses vulnerable after a tough end to 2021, and consumers facing mounting costs of living, hospitality’s road to recovery still has a long way to run.”
Mark Sheehan, managing director at Coffer Corporate Leisure, added: “As working habits return closer to normal, we expect to see eating and drinking out to rebound steadily. London and other city centres are seeing very good numbers. There is cautious optimism for the sector.”
“We expect to see further consolidation in the sector over the coming months, led by a number of well capitalised larger groups looking to grow their estates and take advantage of the resurgence of demand in the pub and casual dining sectors,” Paul Newman, head of leisure and hospitality at RSM, said.
The Tracker, produced by CGA in partnership with The Coffer Group and RSM, collected sales figures directly from 60 companies.
