Managed pubs see 10.8% sales growth in June
The latest Business Tracker from CGA by NIQ, in partnership with The Coffer Group and RSM UK, revealed like-for-like sales had increased for a ninth successive week.
Attributed in part to the hot weather having brought customers out to drink, pub sales grew by 10.8% compared with June 2022.
RSM UK leisure and hospitality partner Saxon Moseley said: “With June officially the hottest on record, pubs were the main beneficiaries as customers opted to make the most of the sunshine and fine weather.
“With food price inflation falling for the fourth consecutive month, operators will be hopeful that margins begin to improve as we head into the summer holiday season.”
Cost pressures
The bar segment saw an 8.4% drop in sales while restaurants finished 3.2% ahead of the same period last year.
Additionally, combined sales growth remained just below the level of inflation, though the gap between the two has closed over the first half of this year, according to CGA.
CGA by NIQ director hospitality operators and food EMEA Karl Chessell said: “These numbers highlight the impressive resilience of managed hospitality groups despite rising costs for businesses and consumers.
“People remain eager to visit pubs, bars and restaurants when they can, especially during warm weather, and pub operators and suppliers will hope for more high temperatures as the summer holiday season begins.
“More interest rate rises may dampen consumers’ confidence and cost pressures remain for operators, but the long-term outlook for the sector remains good.”
Driving recovery
The tracker, which collated figures from 78 groups including BrewDog, Greene King, Fuller’s and Stonegate, also indicated sales were relatively even across the country.
London continued its post-Covid recovery with sales growth of 8.1% within the M25, just ahead of the level of 6.7% beyond the M25.
Responding to the data, UKHospitality (UKH) chief executive Kate Nicholls said while the figures demonstrated the “challenges” faced by the sector, businesses, in particular SMEs, could “draw hope” for “long-term prospects”.
She continued: “Alongside the increased rate of business failure across the independent market, there has been an industry-wide freeze on investment and new openings due to the current crisis, providing a very constrained short-term outlook.
“It’s vital that the sector, especially including our smaller and independent venues, receives as much support as it can get, if it’s going to bounce back and experience that positivity, and play a key part in driving the recovery.”
