Managed groups see second month of ‘inflation beating growth’
Produced by data intelligence firm CGA by NIQ in partnership with audit, tax and consulting services business RSM UK, the tracker showed managed groups saw year-on-year sales growth of 2.9% in June 2024.
The figure was down slightly from May’s rate of 3.6%, but ahead of the current rate of inflation, as measured by the Office for National Statistics (ONS), and marked the eighth period of growth in the last nine months.
CGA by NIQ director of hospitality operators and food EMEA Karl Chessell said: “June’s solid if unspectacular growth capped a decent first half of the year for Britain’s hospitality groups.
“The weather has been far from ideal for pubs and drinks suppliers, but England’s progress in the Euros has been a very welcome lift for venues screening games."
Cost pressures ease
He added: “A good month for restaurants shows consumers remain eager to eat out and we can be optimistic that people will loosen their spending as some cost pressures ease.
“Nevertheless, with the tracker hovering only just above inflation, groups will have to work hard to achieve meaningful sales growth in the second half of 2024.”
According to the data, based on sales figures from 113 managed groups including Greene King and Fuller’s, restaurants were the best-performing channel in June, with year-on-year sales growth of 4.7%.
While the Euros brought sports fans into pubs for match days involving England and Scotland, the damp weather kept people away from beer gardens and terraces, with sales in pubs only 2.7% above June 2023. Bar trade was down by 4%.
Trading was notably stronger in London, where the tracker recorded sales growth of 4.4%, compared to 2.5% outside the M25. The capital has outpaced Britain as a whole for all but one month in 2024.
Modest increase
RSM UK head of leisure and hospitality Saxon Moseley commented: “Pub operators will be disappointed with the modest increase in sales generated by the early stages of the Euros.
“However, a second month of inflation beating growth for restaurants offers further evidence, and hope, that consumer purse strings are loosening against a backdrop of real wage increases and anticipated interest rate cuts.
“There was positive news for the industry in the King’s Speech around the apprenticeship levy amendments and night-time safety, but significant headwinds remain with confirmation of zero hours contracts reform and proposed increases to the national minimum wage.
“Combined with a lack of clarity around business rates, operators will be looking for further certainty from the new government in the second half of the year.”
