Managed groups register 12 months of sales growth in a row

18-Oct-2023 - Last updated on 18-Oct-2023 at 08:03 GMT

Cashing in: a warm September has helped year-on-year sales at managed groups (credit: Getty/izusek)

Managed pub, bar and restaurant groups have completed 12 consecutive months of year-on-year sales growth in September, according to the CGA RSM Hospitality Business Tracker.

The data also showed like-for-like growth of 5.9% last month, which was higher than the tracker’s August figure of 5.3% and close to the general rate of inflation in the UK.

Above-average temperatures in many parts of the country made it a strong month for pubs, where sales grew 8.6% as many consumers enjoyed visits to beer gardens and terraces. Growth in the restaurants sector was a little lower at 4.8%, while bars had another challenging month, with sales down by 8.9%.

Groups’ year-on-year performance has been better in London than the rest of the country since September 2022, and sales growth within the M25 again beat the average at 6.1%. However, with trading beyond the M25 up by 5.8% last month, the gap between the two regions has closed.

Cool August

The new figures are taken from the first edition of the CGA RSM Hospitality Business Tracker, which was previously known as the Coffer CGA Business Tracker.

Karl Chessell, director - hospitality operators and food, EMEA at CGA by NIQ, said: “A cool August made for a good month for restaurants but better weather in September flipped the fortunes in favour of pubs.

“Overall growth of 5.9% represents another solid performance for managed groups and shows consumers remain eager to eat and drink out.

“Ongoing high inflation and interest rates continue to make conditions difficult for many businesses and consumers alike, but we can be cautiously optimistic about a strong final quarter and festive season.”

Strong spending

RSM UK head of leisure and hospitality Paul Newman said: “Despite recent reports that consumers are beginning to pull back on discretionary spending, an unseasonably warm month and the start of the Rugby World Cup have come together to drive strong spending in pub and restaurant groups in September.

“Consumer confidence rose to its highest level in almost two years last month and looking beyond the standard downbeat headlines, it’s not too hard to see why.

“Real wage growth has turned positive again, interest rates appear to have peaked sooner than expected and inflation looks set to fall further.

“Operators will be hoping that these positive vibes continue as we approach the all-important festive trading period.”