Managed pub sales drop for first time since EU referendum

The monthly study of 34 managed pub and restaurant companies, including Mitchells & Butlers and Fuller's, showed that sales slipped in October, with like-for-like sales down 1.2% on the same month last year for pubs.

London saw the biggest fall, with like-for-like sales in pubs down 3.3% down on October 2015. A factor in this decline can be put down to the boost in eating and drinking out, especially in the capital, received during October 2015 for the Rugby World Cup.  

Analysing the figures, the vice-president of CGA Peach, Peter Martin, said: "We have had three consecutive months of positive sales growth in the sector following the EU referendum, but these October figures demonstrate that operators need to remain cautious with plenty of volatility, uncertainty and competition out there in the market."

The overall figures for pubs and restaurants combined showed that like-for-like sales dropped 1%. When broken down, this shows that there was a 2.5% like-for-like reduction in the collective figures for the managed pubs and restaurants in London. Outside of the M25, these like-for-like sales fell 0.5%.

Davis Coffer Lyons executive director of valuations Trevor Watson struck a more positive tone. He said: "Although the sector is expecting some strengthening headwinds, we are finding strong, undiminished demand for restaurants and other licensed property in our core markets.

"As we approach 2017, we may start to witness some areas with slower rental growth due to the pressure of food costs, wages and rates, but premiums will certainly hold for landmark or key leisure pitches with high footfall," he said.