March sales up for managed hospitality groups

Like-for-like sales across Britain’s leading managed restaurant, pub and bar groups in March were 1.4% ahead of last year’s levels, the new Coffer CGA Business Tracker shows.
 
It means the tracker, produced by CGA by NIQ in partnership with The Coffer Group and RSM UK, has now been in year-on-year growth for six successive months. However, March’s rate is the slowest of the first three months of 2023 and substantially below the UK’s current rate of inflation. Pressure on consumer spending, mixed weather and rail strikes all contributed to the challenges facing operators throughout the month.
 
Pubs achieved like-for-like sales growth of 2.4% in March, while restaurants were 2.5% ahead of March 2022. Bars, on the other hand, had a third consecutive month of negative figures, with sales down 13.2%.
 
The Tracker highlights an ongoing revival in London since the end of Covid-19 restrictions, with trading outpacing the rest of the country. Sales within the M25 were 3.1% ahead year-on-year, compared to 1.2% outside the M25.

Karl Chessell, director of hospitality operators and food at CGA by NIQ, says of the findings: "These figures emphasise that trading conditions in hospitality remain challenging and operators have to work hard to grab their share of sales. Consumers’ interest in eating and drinking out remains strong, but after adjustments for inflation it’s clear that in real terms, it is tougher for operators this year than last year.

"May’s three bank holidays will bring opportunities for strong trading, and there is cautious optimism that pressure on spending may ease as the year goes on. But the government’s reduction of support on energy bills from April, and increases in minimum wage levels, will add to the squeeze on operators, and real-terms growth will be difficult for some time to come."
 
CGA collected sales figures directly from 74 leading companies for the latest edition of the Coffer CGA Business Tracker.

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