Like-for-like sales among 27 leading pub and restaurant operators grew 1.2% in May, with London trading ahead of the rest of the country.
The Coffer Peach Business Tracker, which examines the performance of 27 leading pub and restaurant companies, also reported a 4.5% rise in total sales last month.
In London, like-for-likes grew 1.8%, with managed pubs in the capital performing particularly strongly. Outside London, like-for-like pub sales were essentially flat, with wet-led pubs seeing a decline.
Mainstream restaurant chains saw a better performance away from London, both in terms of like-for-like and total sales growth.
On a year-on-year basis, like-for-likes were 1% ahead for the 12 months to the end of May. Total sales were running 4.1% ahead on a year-on-year basis.
Trevor Watson, director at David Coffer Lyons, said: “Although London performed strongly, the underlying trade across the country still looks fragile. The weather in May 2013 was below the long-term average, however, it was better than May 2012.
“Recovery in the housing market, particularly in the south east is giving rise to greater consumer confidence and I expect the statistics to improve over the summer months.”
Paul Newman, co-head of leisure and hospitality at Baker Tilly, said: “The UK consumer’s ability to maintain eating and drinking out spend in a benign economic climate continues to be impressive. As such the UK is increasingly being targeted by international brands seeking to exploit strong positive headwinds.
“US burger chains Five Guys and Shake Shack are following the likes of Chipotle by testing their concepts in the London market and Jumeirah-owned brand Noodle House is also poised to hit the UK over the coming months. While great news for the consumer, these nimble and well-funded market entrants are likely to increase the pressures facing incumbent operators in an already highly competitive marketplace.”
