Discounts driving pub food and drink sales

High levels of discount offers and promotional activiiy boosted food and drink sales for the major managed pub and restaurant groups in January, according to a new survey.

Like -for-like sales were up by 5.6 per cent compared with January 2008, figures released by Peach Business Tracker show.

The survey, based on sales figures from 11 operators including Mitchells & Butlers and JD Wetherspoon, show that an increase in discounted offers and the extended New Year holiday - with most people not back at work until January 5 - helped boost business.

On a month-on-month basis, January food and drink sales were 12.5 per cent below those in December.

Peter Martin, chief executive of Peach Factory, which has developed the Business Tracker project, said: "Increased marketing focus by the major players and the range of consumer offers now in the market have had a major impact on tempting the public out-of-home.

"Eating-out of home has actually become a relatively cheaper alternative to cooking at home. Retail food prices in contrast have risen."

Martin also sounded a warning note to independent licensees, likely to be squeezed by the intense competition in the managed sector.

"The higher levels of professionalism and investment from the major chains will enable them to compete more successfully than the independent sector in tougher economic times and to gain market share," he said.

Peach Business Tracker is run in conjunction with UBS and KPMG. Pub groups taking part include Mitchells & Butlers, JD Wetherspoon, Whitbread, Spirit Group, Bay Restaurants, Town & City Pubs and Barracuda Group. Sales figures from restaurant operators Gondola, Tragus, Wagamama and Carluccio's are also included.