Like-for-like sales across 27 leading pub and restaurant companies fell 3% last month compared to March 2012, with the snow and freezing temperatures blamed.
Total sales fell 0.2%, according to the Coffer Peach Business Tracker. Pubs and pub restaurants fared worse, with like-for-likes down 3.4% compared to a 1.9% decline among high street restaurants. Spending was hit equally within the M25 and outside it.
The report said the damage was really done in the two middle weeks of March, when like-for-likes across the groups in its sample were collectively down 4.8% and 11% respectively, with some operators doing worse than that.
It follows stronger trading in February when like-for-likes grew 3.3%. It also follows a 7% rise in like-for-likes across the Easter holidays.
Trevor Watson, director at Davis Coffer Lyons, said: “The strong level of sales over the Easter weekend suggests that, when weather conditions allow, consumers are willing to spend on eating out.
“The overall numbers were predictably weak and we are now entering a period when like-for-like statistics will be affected by last year’s Diamond Jubilee celebrations, which could result in some strong figures in London in particular.”
Paul Newman, co-head of leisure & hospitality at Baker Tilly, said: “Notwithstanding the disappointing March data, our outlook on the sector remains upbeat.
“As reported over the weekend, the freezing conditions saw UK retail location footfall drop by over 5%. By comparison, this month’s data demonstrates continued resilience in the leisure and hospitality sector. This has encouraged further M&A activity with Little Chef and 3Sixty Restaurants reportedly joining the likes of Côte and Byron in considering transactions over the coming months. Advisors and shareholders alike will be hoping for a prolonged period of better weather to help heat up these processes.”
Jarrod Castle, leisure analyst at UBS European Leisure Research, said: “Weather has clearly had a significant impact on the eating out industry. We believe that as we move into spring, a combination of pent up demand, soft comparisons - LFL growth was -2% in April 2012 - and momentum at the end of March may lead to more encouraging growth figures moving forward.”
