Hospitality sales down 7.1% in October

By Rebecca Weller

- Last updated on GMT

Serious change: sector sales down 7.1% in October (Credit: Getty/AleksandarNakic)
Serious change: sector sales down 7.1% in October (Credit: Getty/AleksandarNakic)

Related tags Finance S4labour Cga

Sales in the hospitality sector were down for the second consecutive month compared to the same period in 2021, figures from S4labour have revealed.

The data from S4labour showed sales were down 7.1% last month, up from 6.9% in September, despite a better trading week over half term of -1.5%.

S4labour chief innovation officer Richard Hartley said: “It is worrying to see two months of serious change in hospitality spending which feels like a combination of cost pressures felt through the current crisis.”

Maximise opportunities 

Weak food sales​ were the biggest downward contributor to sales, having fallen by 9%, as the cost-of-living crisis continues.

Additionally, figures released by the Office For National Statistics (ONS) last month showed food inflation​ has risen to 10.1%, making the largest upward contribution to the Consumer Price Index (CPI) between August and September 2022.

However, with trade having improved over half-term and Halloween, “operators should be looking to maximise opportunities during the upcoming World Cup and Christmas, as consumers prefer to save for a big occasion”, Hartley added.

This comes as research conducted by the BBC earlier this week revealed If England make the World Cup in Qatar, an estimated £91m could be spent on pints.

Fragile economy and confidence 

Furthermore, recent data​ from Heineken UK also showed the football World Cup could increase sales on top of Christmas trade this winter, with 48% of those surveyed saying they were more likely to watch a match in the pub this year.  

However, while drinks sales in the seven days to Sunday 22 October were 6% up compared with the same week in 2021, inflation has continued to hold trade back in real terms, according to the latest CGA Drinks Recovery Tracker.

CGA managing director UK and Ireland Johnathan Jones said: “Year-on-year growth is creeping up towards the level of inflation, which bodes well for Christmas trading.

“But with the economy and consumer confidence ​both fragile, operators and suppliers will have to keep working hard to attract people to the on premise over the festive season.”

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