‘Encouraging’ month of trading for pubs and restaurants as sales rise

Like-for-like sales in the sector were up 0.6% from last month
Industry
13/07/2017 - 10:33
Latest figures from the Coffer Peach Business Tracker show that the UK pub and restaurant sector enjoyed an increase in sales over the month of June.

Despite growing concerns within the industry about a weakening of consumer confidence, and following on from May’s 0.4% decline, like-for-like sales in June were up 0.6% nationwide.

The figures, collected from 36 companies across the country, showed that pub and bar groups saw collective like-for-like sales up 1.1% on June 2016, with casual dining restaurant chains marginally down 0.2%.

Peter Martin, vice president of CGA Peach said: “Fears of consumers cutting back on spending so far appear premature, at least when it comes to going to the pub or restaurant.”

London pubs performed especially well last month, experiencing a 2.4% increase in like-for-like sales, a rise which has been largely put down to the month’s warm weather.

Like-for-like sales across London as a whole were up 1.2%, while there was a 0.4% rise outside of the capital.

“The good weather in June will have helped pubs rather than restaurants, but a positive return across the market, even if modest, is good news,” added Martin. “We essentially have a flat market, which considering the uncertainty in the wider economy and the increasing cost pressures that the out-of-home market is experiencing, will be welcomed by operators.”

Total sales growth in June among the Tracker cohort was 3.7%, reflecting the continuing effect of new openings over the year. The underlying annual sales trend shows sector like-for-likes running at 1.4% ahead for the 12 months to the end of June.

Paul Newman, head of leisure and hospitality at RSM, said: “Despite the additional cost pressures and general economic uncertainty, the resilience of this month’s results with a return to positive like-for-like sales is encouraging. Operators who offer the consumer an affordable experience will continue to thrive and prosper in the current environment.”

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