October trade 'concerning' for sector
The latest research from market intelligence insight firm Oxford Partnership showed the total number of trading UK on trade outlets declined by 0.4% in the year to October, the same figure as September.
However, outlet opening hours saw a slight improvement, rising from 0.1% in September of to 1.5%. Though the year-to-date figure remained relatively flat with a minimal rise of 0.2%.
Occupancy levels also saw marginal growth of 0.1% against the same four-week period last year.
While consumer dwell time decreased 1.1% month on month, the figure was up slightly (0.2%) over the previous 12 weeks.
Moreover, consumer spending in pubs and bars plateaued in October as the cost-of-living-crisis continued to bite, the latest Barclays Consumer Spend report revealed.
Battling through
The report detailed almost half (46%) of individuals interested in interacting with the hospitality sector planned to cut down on discretionary spending in order to save money.
Meanwhile spend in hospitality remained flat last month, Barclays added, the lowest noted growth rate for the on-trade since September 2022, when the figure was measured at -0.5%.
October also saw the autumn Budget, which included a number of measures affecting hospitality firms.
Addressing Parliament on Wednesday 30 October, Chancellor Rachel Reeves announced the current 75% business rates relief discount would end on 30 March 2025. From 1 April, the relief on bills will be 40%, up to a £110,000 cash cap.
Increases to Employer National Insurance contributions and the National Living Wage were also detailed in the Budget alongside an increase to the draught duty relief.
Oxford Partnership CEO Alison Jordan said told The Morning Advertiser (MA): "We see that UK hospitality is managing to battle through despite the challenges of the cost-of-living squeeze on consumers, with flat footfall and falling dwell times.
Tough comparisons
“The impact of the Budget is going to be big with the rise in Employer National Insurance and the National Living Wage, so the great hope is for some festive cheer to boost the trade across pubs, bars and restaurants.”
Category wise, only two of the segments measured by Oxford Partnership saw “real growth” in October, World Lager and Stout.
However, against the same four weeks in September, all categories saw some uplift in sales except for Ale.
Stout led the charge with a month on month increase of 4.3%, followed by Premium Lager at 3.4%, Craft at 3.3% and World at 2.7%.
In addition, three out of the four weeks in October saw a drop in drinks sales in managed venues by value, attributed to wet and unpredictable weather and sporting events making for tough year-on-year comparisons, according to figures from CGA by NIQ’s Daily Drinks Tracker.
The October update followed "disappointing" trade in September, as detailed in the previous report from Oxford Partnership.
