Pubs ‘performed below market average’ in July

18-Aug-2023 - Last updated on 18-Aug-2023 at 08:01 GMT

Sales report: the Coffer CGA Business Tracker looks at the trade across managed pubs, bars and restaurants (image: Getty/PIER)

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Managed pub groups reported 7% sales growth last month (July), with wet weather and stagnant temperatures largely to blame.

The new Coffer CGA Business Tracker from CGA by NIQ in partnership with The Coffer Group and RSM UK looked at like-for-like sales across managed restaurant, pub and bar groups, which revealed sales had increased b 7.8% for the month period.

While pubs had been leading the segment since May last year, the recent inclement weather meant the sector was below the market average.

Moreover, bars continued to hold a similar position as has been seen in recent months with like-for-like sales down 7.1% compared to last year.

According to the tracker, restaurants took up the redirected trade with a boost in like-for-likes to 12.2%.

No surprise

When looking at areas across the nation, the performance gap between London and the rest of the country continued to narrow.

The research showed like-for-like sales growth for managed groups within the M25 were the same as in June at 8.1% while growth outside the motorway rose again to 7.7%.

CGA by NIQ hospitality operators and food EMEA director Karl Chessell said: “As the hotter weather declined in July, the effect this has had on drink-led outlet sales has come as no surprise, especially considering the positive results from the more favourable weather we had in June.

“While it is disappointing to see the weather have a negative effect on drink-led outlet, the positive period for restaurants is encouraging, especially considering the negative results from last month’s tracker and the continuing rising cost challenges the sector is facing.”

The mainstream eating and drinking out sector are performing better, Coffer Corporate Leisure managing director Mark Sheehan said.

Better outlook

He added: “Consumers are continuing to go out and the outlook while challenging, is looking better.

“We see optimism among many operators and are cautiously positive for the coming months.”

RSM UK head of leisure and hospitality Paul Newman continued the optimism about trade for the restaurant sector.

“While July’s weather was a washout for much of the UK, it proved to be a ray of sunshine for Britain’s managed restaurant groups with inflation beating 12.2% growth when compared to the year before,” he said.

“The record-busting opening weekend of Barbenheimer will also have driven significant footfall to casual dining restaurants and underlines the positive impact a booming entertainment sector can have on the eating out market.

“With the pace of earnings poised to outstrip inflation for the first time in more than a year, the outlook for consumer spending in the leisure sector looks somewhat rosier than it did a few months back.”