The UK’s leading pub and restaurant operators reported a 0.2% decline in like-for-like sales during July, with performance impacted by poor weather and a pre-Olympics lull, according to the latest Coffer Peach Business Tracker.
Last month’s performance compares to a 1.3% like-for-like increase in June. Total sales in July, taking into account new openings, were up 3.6% on the previous year. The data also showed that the annualised like-for-like sales growth rate for the leading groups was currently running at around 2.2%, with total sales running at around 5.8%,
The research, which surveys 25 major companies in the eating and drinking out sector, found that the week running up to the opening ceremony was the worst performing week of the month, and the one that pushed an otherwise generally flat period into just negative territory.
The report said: “However, the full impact will not be seen until the August figures are published, although we do know from provisional figures that for the market as a whole the first full week of the Games was marginally up on the same week last year.”
The latest figures also continued to show pub and pub restaurant operators delivering better like-for-like figures than high street casual dining, a trend that is most marked within the M25 where the report said that restaurant groups are up against increasingly intense and diverse competition.
It said that pubs seemed to be doing better in London, and were providing part of that competition, while in the market overall, chains were finding more growth away from the capital.
Trevor Watson, director at Davis Coffer Lyons, said: “Although these statistics don’t at first sight look a gold medal performance, the fact that the overall figures are broadly neutral should probably be treated with both satisfaction and a degree of caution.
“Comparing trading figures in the restaurant and pub industry across the summers of 2011, 2012 and 2013 will be challenging as the English Riots of 2011 and the Olympic Games of 2012 distort trading patterns at the local level. The statistical background is complex, with underlying UK population growing, but visitor numbers to the UK (which has a profound effect on London trade) disappointingly down in H1 2012, as the Eurozone crisis continues and sterling strengthened.”
Jonathan Leinster, head of UBS European Leisure Research, said: “A particularly wet July has continued the trend of weather having a negative impact on pubs and restaurants this summer. But despite negative LFL growth, total sales were up 3.6% implying almost 4% increase in units.
“This is a continuation of the strong growth in openings with year-to-date new unit growth averaging 4.1%. This is a positive for the industry as it illustrates that brands are continuing their roll out schedules despite the tough economic climate. We believe consumers are as focussed as ever on value-for-money propositions offered by leading brands and this is encouraging further openings.”
