Food sales continue to grow drive growth for pubs groups, up 4% in November compared to 1.5% for drinks, according to the latest Coffer Peach Business Tracker.
The report showed total like-for-like sales across the eating and drinking out sector up 3.4% year-on-year for November, the highest rate of growth since April and the 20th consecutive month of uplifts.
The figures showed that London remains more buoyant than the rest of the country with like-for-like sales up 6.1%, compared to 2.4% outside the M25.
Managed pub groups saw 2.8% like-for-like growth, with casual dining chains up 4.8%
Peter Martin, vice president of CGA Peach which produces the tracker in partnership with Coffer Group, Baker Tilly and UBS said: “Eating-out is now ingrained in the British way-of-life, and for the pub groups in our sample, food sales are still growing faster than drink. Overall, food sales account for an average 45% of revenue in managed pub chains.”
Total sales, which include the impact of new openings, were up 6.8% against last November across the 30 restaurant, bar and pub companies in the Tracker sample. Total sales for restaurant groups were ahead 10%, reflecting the continued roll-out of casual dining brands, especially outside of London.
“Looking at the underlying trend, the year-on-year like-for-like rate at the end of November was running at 2.9% up on 2013,” said Martin.
Trevor Watson, director at Davis Coffer Lyons, said: “The figures continue to show steady growth in the sector. Consumer spending power will be sustained in 2015 as a result of falling oil prices, which will help to ensure the casual dining and pub sectors continue on their upward trajectory in terms of sales figures. The London market continues to be the principal engine of the sector and we do not see any reason for this to change in the immediate future.”
Paul Newman, head of leisure and hospitality at Baker Tilly, added: “This month we again see another set of cracking results for a jubilant sector. Total sales growth continues to build a head of steam as the evenings have grown longer, posting 6.8% growth, which represents the highest monthly sales increase since April. The strong recent sales growth figures are particularly impressive against a backdrop of stagnant UK wages. The storming success of the recent Chilango and River Cottage fundraisings and the ensuing ownership battles for larger chains such as ASK/Zizzi and TGI Friday’s are testament to the sector’s attractiveness to small and large investors alike.”
Jarrod Castle, leisure analyst at UBS Investment Research, said: “LFL sales growth in November saw an acceleration at 3.4%, against October at 2.2%, September at 2.2%, 1.3% for August and 2.2% in July. This leaves the 12-month moving average growth rate at 2.9%.”
