December sales dropped 11% for managed restaurant groups

Managed restaurant, pub and bar groups across Britain were hit by a double-digit slump in sales in December compared to pre-pandemic levels, according to the latest Coffer CGA Business Tracker.

The decline in trade was largely due to fears surrounding the spread of the Omicron variant causing mass cancellations for pre-booked Christmas celebrations across the sector. 

Created by CGA in partnership with The Coffer Group and RSM, the tracker shows that groups' total sales in the last month of 2021 were 11% lower than for the same month in 2019. This followed four successive months of 2021-on-2019 growth.

Pubs and bars particularly suffered, with sales dropping 12% and 19% respectively, compared to restaurants, which were down by 8%. Central London venues were the hardest hit, with sales for sites within the M25 down by 19%, compared to 8% beyond the M25. 

"These figures show the hugely damaging impact on consumers' anxiety and restrictions on trading at what should have been the busiest time of year," says Karl Chessell, director of hospitality operators and food EMEA at CGA.

"Restaurant groups in particular did well to shore up sales as much as they did, but on top of rising costs, supply problems and staff challenges, the difficult December leaves many businesses without the buffer of cash they would normally rely on in January. Demand for eating and drinking out remains strong, but the sector needs support on tax and other pressures if it is to help power the UK's economic recovery when Covid-19 restrictions finally ease."

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