Like-for-like sales up 3.7% in November
The tracker, produced by CGA NielsenIQ alongside the Coffer Group and RSM UK, also recorded like-for-like growth of 5% vs November 2019.
However, the rate of inflation, which hit 10.7% last month, has held sales down in real terms.
Coffer Group chairman David Coffer said: “On the face of it, these figures are very promising especially in relation to turnover, but the consumer price index figures counter this progress dramatically, as well as the deterioration of turnover because of a wide range of industrial actions – in particular, those relating to trains and local transport.
Trading damage
“With impending strikes over the festive period there will certainly be further sector trading damage, but it is hoped there will be extensive intolerance and resistance from the public wishing to seasonally celebrate for the first time in 3 years. It is hoped this will see a dilution of the effect that is feared.”
The start of the 2022 FIFA World Cup helped deliver a strong November for pubs, where sales saw an 8.1% year-on-year increase.
However, the tournament and pressure on discretionary spending made it a much more difficult month for the managed restaurant and bar segments, where like-for-like sales were down 0.8% and 8.6% respectively vs November 2021.
Additionally, the data, collected from more than 79 companies including Marston’s; BrewDog; Mitchell’s & Butlers and Fuller’s, also showed London’s hospitality sector had continued to bounce back post-pandemic with sales within the M25 growing 6.2% year-on-year, twice the rate of 3% outside the M25.
CGA EMEA director hospitality operators and food Karl Chessell said: “It was a positive November for pubs screening World Cup matches, and another strong month for London as workers and visitors continue to return to the capital, especially ahead of the festive season.”
Teetering on the edge
Though Chessell added spiralling costs and a strain on consumer spending had left many businesses “extremely fragile” with “little respite” on the horizon in what will be a “challenging” December for many as ongoing rail strikes threaten festive footfall.
Furthermore, Chessell stated there was a “strong case” for the Government to provide “urgent and targeted support” to “protect” the sector.
RSM UK head of leisure and hospitality Paul Newman said: “The festive trading period is when most hospitality businesses make the majority of their annual profits.
“With last year’s festivities severely impacted, 2022 needs to deliver if the sector is to avoid a grim start to 2023.
“Industrial unrest alongside fragile consumer confidence will only add to restaurant operators’ woes and could leave a number of under-capitalised businesses teetering on the edge as New Year approaches.”
