Managed groups' sales up 2% in April

Britain's leading managed restaurant, pub and bar groups recorded like-for-like sales growth of 2% in April, according to the latest Coffer CGA Business Tracker. 

Compared with April 2019, the Tracker – produced by CGA in partnership with The Coffer Group and RSM – is in growth for the third month in a row, following increases of 3% and 4% in February and March. However, with compound inflation since early 2019 far exceeding 2%, managed groups' real-terms sales are still well below pre-Covid levels. 

Last month, restaurants saw the strongest performance across the Tracker's three sectors, with like-for-like sales growth of 5% from April 2019. Bars were close behind at 4% while pub sales remained flat. 

Continuing the pattern seen since hospitality reopened after lockdown one year ago, trading in London lagged behind the rest of the rest of the country in April. The Coffer CGA Business Tracker shows managed groups' like-for-like sales inside the M25 were down by 2% on 2019, while regions beyond the M25 recorded growth of 3%. 

"A third successive month of like-for-like sales growth shows managed restaurants, pubs and bars continue to build back after a very tough two years," says Karl Chessell, director of hospitality operators and food at CGA. 

"However, any modest rises at the moment are being swallowed up by high inflation, and the Tracker's dip from March to April suggests soearing prices might be starting to squeeze consumers' spending. The worst of Covid-19 may be behind us now, but cost issues are going to put intense pressure on hospitality's sales and margins for the forseeable future."

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