Managed groups' sales up 3% in February

Like-for-like sales for managed groups were up 3% in February, according to the latest edition of the Coffer CGA Business Tracker.

The lifting of Covid-19 restrictions nationwide helped Britain's managed restaurant, pub and bar groups raise sales above pre-pandemic levels last month. However, high inflation continues to make real-terms growth elusive. 

The tracker, produced by CGA in partnership with The Coffer Group and RSM, shows the like-for-like growth against February 2019 – the most recent Covid-free year. This builds momentum from January, when comparative sales were 1% down, also following a very challenging December for the sector, when the Omicron variant pushed trading 11% below December 2019. 

Restaurants increased like-for-like sales by 9% in February, outpacing the 7% growth for bars, which benefitted from the scrapping of requirements for vaccination passes in late-night venues. Pubs had a tougher month, comparatively, finishing 1% down on the pre-Covid levels of February 2019.

While this growth is encouraging, the figures are depressed by inflationary pressures. Recent editions of the Consumer Prices Index have shown that inflation is running at 5–6% over the last 12 months alone. 

Trading it also struggling to recover in London, the tracker reveals. Groups' like-for-like sales inside the M25 in February were 4% below February 2019, compared to growth of 6% beyond the M25. 

"These figures show managed groups are building momentum after two years of turmoil," says Karl Chessell, director of hospitality and food at CGA. "Delivery and late-night bars are particularly buoyant at the moment, and underlying demand for hospitality experiences remains strong. However, margins are being tightly squeezed by fast-rising costs, and the cost-of-living crisis is likely to dent consumer spending as the year goes on. Some businesses remain extremely vulnerable, and there's a powerful case for government support on tax and other issues to help them fuel the UK's post-Covid economic recovery." 

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