Hospitality group sales up 5% in June

Last month, like-for-like sales in Britain's top managed restaurant, pub and bar groups were 5% ahead of the pre-Covid-19 levels of June 2019, according to the latest Coffer CGA Business Tracker. 

The result from the tracker – produced by CGA by NielsenIQ in partnership with The Coffer Group and RSM UK – represents the strongest like-for-like growth since the start of 2022. It should be noted, however, that June's figures are skewed by the Queen's Platinum Jubilee, which provided two bank holidays against none in June 2019. The growth is also below inflation as measured by the Consumer Price Index, which recently topped 9%. 

Restaurants were the strongest performing of the three hospitality segments measured in June, with like-for-like growth of 8%. Pubs' sales were up 3% on three years ago, and bars' sales rose by 5%. 

The Tracker shows that trading in London has been slow. After a flat performance in May, like-for-like sales within the M25 were down by 1% in June, compared to 7% growth beyond the M25. It follows rail strikes over several days in June, which significantly reduced footfall from workers and visitors in the capital. 

The data also suggests that some consumers who have opted for deliveries since the start of the pandemic are now returning to eating out. Managed groups' dine-in only sales were up 2% on a like-for-like basis in June – the first time this year that they have been in line with total growth. 

"Like-for-like sales growth of 5% would represent a strong performance for managed groups in most months. However, high inflation means sales are down in real terms, and mounting costs continue to pile pressure on profit margins," says Karl Chessell, director of hospitality operators and food at CGA. 

"The first half of 2022 has brought some welcome stability to the hospitality sector, and consumers have returned to most of their pre-pandemic habits—but while the long-term outlook remains good, there may be some tough months ahead for many businesses."

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