The UK’s managed restaurant, pub and bar groups have achieved 12 consecutive months of year-on-year sales growth this September.
CGA and RSM’s Hospitality Business Tracker indicated like-for-like growth of 5.9% last month, close to the general rate of inflation in the UK.
Data collected from 93 leading managed groups showed that year-on-year performance has been better in London than the rest of the country since September 2022, with sales growth within the M25 an above average 6.1%.
However, the gap has closed between the regions with trading beyond the M25 up by 5.8% last month.
Karl Chessell, director - hospitality operators and food, EMEA at CGA by NIQ, said that a cool August made for a good month for restaurants, but better weather in September had flipped the fortunes in favour of pubs.
Pub sales grew 8.6% as many consumers enjoyed visits to beer gardens, however growth in the restaurants sector was a little lower at 4.8%, while bars had another challenging month, with sales down by -8.9%.
”Overall growth of 5.9% represents another solid performance for managed groups, and shows consumers remain eager to eat and drink out”, said Chessell.
However, ongoing high inflation and interest rates continue to make conditions difficult for many businesses and consumers alike, he said, adding that we can be “cautiously optimistic” about a strong final quarter and festive season.
Paul Newman, head of leisure and hospitality at RSM UK, added, “Consumer confidence rose to its highest level in almost two years last month and looking beyond the standard downbeat headlines, it’s not too hard to see why.
Real wage growth has turned positive again, interest rates appear to have peaked sooner than expected and inflation looks set to fall further. Operators will be hoping that these positive vibes continue as we approach the all-important festive trading period,” said Newman.
