Leading pub operators see summer boom
Leading pub and restaurant chains appear to be benefitting from UK consumers holidaying at home rather than abroad, new figures suggest.
According to the latest missive from research outfit the Coffer Peach Business Tracker, the UK's leading bars and eateries saw turnover in July rise 1.9 per cent compared with the same month last year. This follows a 1.4 per cent like-for-like hike in June.
Month-on-month the Tracker reported that sales were up by more than a quarter, which included what it called the "negative impact" of the World Cup.
But while 'staycationers' - as domestic holidaymakers are often known - may have helped the local eating out market, Will Hawkley, a director of the travel, leisure and tourism arm at accountants KPMG and a member of the Business Tracker, warned the sector not to get carried away.
"The holiday season may have helped maintain sales so far, but with [Bank of England governor] Mervyn King's warning of a 'choppy recovery' to come, the outlook for the sector is unlikely to be plain sailing," he said.
"Storm clouds are already gathering in the form of public sector spending cuts and the VAT hike. The impact of these challenges on consumer confidence remains to be seen, but as a typical bellwether of consumer spending the eating out sector could feel the brunt of any future downturn," he added.
The Business Tracker assesses the monthly trading profile of 16 large pub and restaurant operators, including Mitchells & Butlers, Punch Pub Company and Pizza Hut.
