Managed pubs outperformed the licensed sector as a whole in August, achieving a year-on-year growth of 2.9% despite unfavorable weather, according to the latest CGA RSM Hospitality Business Tracker. Restaurants saw a 0.8% increase, while the on-the-go segment experienced a growth of 5.0%. In contrast, bars faced a continued decline with a 9.0% drop.
Sales in August rose by 1.2% within the M25, while areas beyond the capital slightly outperformed with a 1.4% growth. This marked only the second instance this year where London recorded weaker figures than the rest of the country. Overall, total sales growth for August, which included new venues opened in the past year, stood at 3.7%. Meanwhile, Britain’s leading hospitality groups achieved modest year-on-year growth of 1.3%.
Karl Chessell, director of hospitality operators and food for EMEA at CGA by NIQ, remarked, “August’s figures complete a modest summer for hospitality groups. With both weather and consumer confidence disappointing, real-term growth has been challenging. While some bars and restaurants have struggled to maintain footfall, pubs have fared better, particularly with the impact of cooler temperatures on beer gardens and terraces. Consumers still show a desire to eat and drink out, and operators hope that increasing consumer confidence will lead to more discretionary spending as we approach the vital final quarter of 2024.”
Saxon Moseley, head of leisure and hospitality at RSM UK, added, “Following a quiet summer, the hospitality sector is hoping for additional government support in the Autumn Budget. This includes reforming business rates, reducing VAT to align with European standards, and lowering employer national insurance contributions to help manage rising wage costs. Such measures could alleviate the financial strain on the sector and stimulate sales growth. However, a challenging Budget might undermine consumer confidence, affecting discretionary spending and business investment, which could hinder recovery efforts as we head into the crucial festive trading season.”
