Managed groups see second month of below-inflation growth
The most recent CGA RSM Hospitality Business Tracker showed managed hospitality groups in the UK achieved year-on-year sales growth of 1.3% last month, 1.1 percentage point the current headline rate of inflation.
While groups have seen like-for-like increases every month so far in 2024, the latest figure marked the second month in a row of below inflation numbers.
In addition, the Tracker has only topped 4% once since the start of the year. Total sales growth in August, including new venues opened during the last 12 months, stood at 3.7%.
The Tracker showed managed pubs outperformed the licensed sector as a whole in August, with year-on-year growth of 2.9% despite disappointing weather.
Crucial quarter
Restaurants recorded a 0.8% increase, but bars continued a long run of negative numbers with a drop of 9.0% meanwhile the on –the go segment achieved 5% growth.
CGA by NIQ director hospitality operators and food EMEA Karl Chessell said: “August’s figures complete a modest summer for hospitality groups, and with the weather and consumers’ confidence both underwhelming, real-terms growth has been elusive.
“While some bars and restaurants have found it hard to sustain footfall, the picture has been brighter at pubs, especially given the impact of the cool temperatures on beer gardens and terraces.
“Consumers remain eager to eat and drink out when they can, but operators will be hoping they will feel confident enough to spend more freely as we move towards the crucial final quarter of 2024.”
The tracker measures sales figures collected from 112 managed groups including Arc Inspirations, BrewDog, Greene King, Loungers, Fuller’s, Boxpark, and Stonegate.
Lacklustre summer
Sales rose by 1.2% inside the M25 in August, while venues further afield “fractionally outperformed”, according to CGA, with 1.4% growth. The second time this year the capital has recorded weaker figures than the rest of the country.
RSM UK head of leisure and hospitality Saxon Moseley said: “After a lacklustre summer, the hospitality sector will be hoping for further Government support in the autumn Budget.
“Including business rates reform, a reduction in VAT to bring the sector in line with our European counterparts and a fall in employer national insurance contributions to help operators cope with increases in wages.
“All these things can help reduce the cost burden on hospitality and, crucially, stimulate sales growth.
“However, a ‘painful’ Budget could dent consumer confidence and with it, discretionary spending and business investment which would hold back any recovery and apply more pressure ahead of the all-important festive trading season.”
