The latest edition of the CGA RSM Hospitality Business Tracker revealed managed groups saw year-on-year sales growth of 2.7% last month.
Marginally above the latest 2.3% rate of inflation, the figure marked the first real-terms growth for firms in six months.
Previously, managed groups had seen months of below inflation growth.
RSM UK head of leisure and hospitality Saxon Moseley said: “November’s results represent a welcome rebound in spending after consumer confidence took a hit in the run up to October’s autumn Budget, with like for like growth the highest since June and above the average for the 2024 year.
“Amidst a wave of tax rises and changes to legislation which are set to significantly increase costs for the sector, the hospitality industry is in desperate need of revenue growth to balance the books.
Improving consumer confidence
“Operators will therefore be hoping this is the start of a sustained period of increased leisure spending, driven by rising real wages, falling interest rates and improving consumer confidence.
“With the festive trading period in full swing, all operators will want this Christmas are strong sales to close out the year.”
According to the Tracker, total sales growth, including new venues opened during the last 12 months, stood at 4.7% in November.
Managed restaurants performed best of the main hospitality segments, with like-for-like growth of 3.6%, while pub groups saw a 3.1% increase, having benefited from Halloween celebrations at the start of November.
Among other channels, bars continued a long run of negative numbers, with sales down by 5.3% from the same month in 2023. On-the-go venues recorded 2.8% growth.
In addition, trading in London was slightly ahead of the rest of the country for the first time since July, the Tracker indicated.
Severe pressure
Managed groups’ November sales inside the M25 were up by 3% year-on-year, while venues beyond the M25 achieved 2.5% growth.
It followed news foodservice inflation had fallen for a 16th consecutive month in October, dropping to 2.2%, as detailed in the most recent Foodservice Price Index report from Prestige Purchasing and CGA by NIQ.
CGA by NIQ hospitality operators and food EMEA director Karl Chessell added: “After struggling for real-terms growth for much of the Summer and Autumn, November’s trading figures represent a solid if unspectacular recovery.
“They are particularly welcome in light of the new burden placed on hospitality by the Government’s Budget, but costs and margins will continue to be under severe pressure for some time to come.
“With the vital Christmas and New Year trading period looming, groups will now be keeping everything crossed for favourable weather and strong consumer confidence so they can end 2024 on a high.”
