UK city F&B sales see solid growth

Restaurants, pubs and bars in Britain's major cities are now seeing solid growth in sales from pre-Covid levels, according to new research by CGA and Wireless Social. 

The joint Top Cities report combines CGA's sales data with device login data from Wireless Social, providing a 'vibrancy' ranking of Britain's 10 most populous cities over the four weeks to 7 May 2022. 

The study shows that nine of the 10 cities recorded higher sales throughout the month compared with the same period in 2019. Bristol tops the list of most vibrant cities, and sales growth was above 8% in Manchester, Birmingham and Glasgow. 

In the longer run, Manchester and Liverpool have achieved the highest sales growth since the start of the Top Cities research in late 2021. These two cities have picked up where they left off pre-Covid, when CGA research showed hospitality in these locations was seeing some of its strongest sales growth and new openings.

However, login volumes in all 10 cities remain well below 2019 – an indication that sales growth is being driven by higher spend and increased prices rather than by more frequency. The report also shows that London's sales remain short of 2019 levels, though with more commuters and tourists returning, the capital is getting closer to recording growth. 

Optimism about city centre restaurants, pubs and bars is tempered by high inflation, with costs rising sharply in food, energy, labour and other key areas. Steep price rises are also starting to squeeze some consumers' spending. 

Britain’s 10 biggest cities, ranked by vibrancy
Rankings for the four weeks to 7 May 2022. Numbers in brackets indicate position for the previous four weeks to 9 April 2022.
1. Bristol (5)
2. Glasgow (1)
3. Birmingham (2)
4. Manchester (3)
5. Leicester (4)
6. Liverpool (6)
7. Leeds (7)
8. Edinburgh (9)
9. Sheffield (10)
10. London (8)

On the findings, Chris Jeffrey, client director at CGA, comments: "After more than two years of turmoil, Britain's biggest cities are getting back to their pre-Covid vibrancy. We continue to see a release of pent-up demand, especially for late-night dining and drinking, and the steady return of workers to offices has been a welcome boost.

"However, footfall remains some way off what might be expected at this time of year, and Covid issues have been swiftly followed by intense cost pressures on businesses and consumers alike. While the long-term outlook for city centre hospitality is good, significant challenges lie ahead."

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