Restaurants Triumph Over Pubs in June Sales Despite Football Fever
Posted by Emily on 24th Jul 2024
According to the latest CGA RSM Hospitality Business Tracker, restaurant sales outpaced pub sales during June, even though the Euros were expected to boost pub sales. Britain's leading hospitality groups reported a year-on-year sales increase of 2.9% in June 2024, slightly down from May's 3.6%, yet still surpassing the current inflation rate. This marks the eighth growth period in the last nine months.
Restaurants showed a robust year-on-year sales growth of 4.7%, significantly higher than the 2.7% growth seen in the pub sector. Despite the influx of football fans to pubs for matches involving England and Scotland, damp weather discouraged patrons from enjoying beer gardens and terraces.
"June's solid if unspectacular growth capped a decent first half of the year for Britain's hospitality groups. The weather has been far from ideal for pubs and drinks suppliers, but England's progress in the Euros has been a welcome lift for venues screening games," commented Karl Chessell, director at CGA by NIQ.
He added, "A good month for restaurants shows consumers remain eager to eat out, and we can be optimistic that people will loosen their spending as some cost pressures ease. Nevertheless, with the Tracker hovering just above inflation, groups must work hard to achieve meaningful sales growth in the second half of 2024."
The on-the-go segment also performed well, with a 4.0% growth, while bar sales saw a decline of 4.0%. London experienced stronger trading, with a sales growth of 4.4%, compared to 2.5% outside the M25.
"Pub operators will be disappointed with the modest increase in sales generated by the early stages of the Euros. However, a second month of inflation-beating growth for restaurants offers further evidence, and hope, that consumer purse strings are loosening against a backdrop of real wage increases and anticipated interest rate cuts," stated Saxon Moseley, head of leisure and hospitality at RSM UK.
Moseley also highlighted, "There was positive news for the industry in the King's Speech around the apprenticeship levy amendments and night-time safety, but significant headwinds remain with confirmation of zero hours contracts reform and proposed increases to the national minimum wage. Combined with a lack of clarity around business rates, operators will seek further certainty from the new government in the second half of the year."