Hospitality groups sales grow 3.6% YOY
Despite disappointing weather in many parts of Britain, the latest CGA RSM Hospitality Business Tracker has reported Britain’s leading hospitality groups achieved year-on-year (YOY) sales growth of 3.6% in May 2024, with firms in London outperforming the rest of the UK.
After a 1.7% drop in trading in April, the industry saw a rapid increase in positive numbers, with May’s figure above the current rate of inflation measured accordingly with the Consumer Prices Index.
Economic certainty
Consumer spending saw a positive surge throughout the month with the two separate Bank Holiday weekends as well as an overall easing of certain household bills.
CGA EMEA hospitality operators and food director Karl Chessell said: “Bars and on-the-go sites are still some way short of where they could be. The general election and greater economic certainty may help to unlock further spending, but operators will be hoping above all for much brighter summer weather to tempt people out of home.
“May brought a relief to return to above-inflation growth in hospitality after a blip of negative numbers in April. Wet and cool weather continues to work against pub operators, but they and restaurants may be starting to feel the benefit of a relaxation of spending among some consumers, especially over occasions like Bank Holiday weekends.”
Sluggish gains
The tracker demonstrated a substantial improvement since April, with year on year growth highest within the pub sector at 4.4%, while bars saw a 2.7% drop and restaurants at 3.8%. The on the go segment was 1.6%
RSM UK head of leisure and hospitality Saxon Moseley said: “A return to growth in May is welcome news but the sluggish gains since April’s minimum wage increase means many operators will be struggling to absorb this additional overhead.
"As rainy weather and delayed interest rate cuts continue to weigh on the recovery of consumer confidence, pressure will be mounting on whoever is elected in July to offer much needed support to the sector, with rates reform, reduced VAT and better access to skilled workers high on the wish list.”
