Sales at pubs overtake restaurants thanks to Euro 2024
Though other areas of the industry suffered as consumers enjoyed the Euros 2024 tournament in pubs last month, according to the latest CGA RSM Hospitality Business Tracker.
Pubs within the M25 performed especially well, the data showed, with a 9.9% like-for-like uptick in sales.
Restaurant trade saw steep declines, dropping from +4.7% in June, to -2.1%. Bars had another negative month, down by 6% while the on-the-go segment saw like-for-like growth of 1.5%.
Winners and losers
RSM UK head of leisure and hospitality Saxon Moseley commented: “Much like the Euro 2024 final, there were winners and losers in July’s results.
“While pubs reaped the benefits of a sports-fuelled July, restaurants and bars saw negative like-for-like sales, with some operators even closing early due to cancelled bookings and reduced demand.
“As disposable incomes recover from the cost-of-living crisis, these results do demonstrate there is only so much set aside for leisure spending, underscoring the intense competition for customers across different segments of the market.
“Well run businesses with differentiated offerings and flawless experiences will continue to do well as real wages rise and confidence returns in the second half of the year.”
Knock-on effect
The tracker, which looked at sales figures from 114 managed firms including Fuller’s and Greene King, showed hospitality groups achieved year-on-year sales growth of 1.5% overall during this period, down from 2.9% in June.
CGA director Karl Chessell said: “With most positive growth being seen in the pub sector in July, this had a knock-on effect to other hospitality venues as they saw like-for-like drops in performance. For hospitality as a whole, this isn’t necessarily a negative thing.
“The uplifts seen based on key events within the month show while the cost-of-living pressures are still ongoing, consumers are still making those all-important visits to hospitality venues.
"As we move into the back end of Summer, with warmer weather, and an upcoming Bank Holiday at the end of the month – we hope to see growth spread more equally across key segments.”
