The latest Oxford Market Watch, produced by real time market intelligence firm Oxford Partnership, found the number of operating licensed outlets fell year-on-year to 98,999 in June, while total draught volumes increased by 0.9%.
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Based on draught volumes from Vianet and transaction data from Dojo, the report also showed footfall rose by 4.5% compared with the same period last year.
In addition, average dwell time was up by 7.7% to 154 minutes, while average trading hours edged up by 0.2% and total consumer spend grew by 2.9%.
Food continued to drive spending growth, increasing by 3.8% compared with a 1.9% rise for drinks. Average spend per head remained at £26.84.
Sales per trading occasion also improved, with rate of sale up 3%, indicating venues generated more draught volume despite the continued decline in outlet numbers.
Regional performance
Meanwhile, the World Cup provided an additional reason for consumers to visit pubs, bars and restaurants, reinforcing hospitality’s role as the destination of choice for watching major sporting events.
London recorded the strongest regional performance, with draught volume growth of 8% last week and 5.4% across the past four weeks.
Suburban outlets returned to growth at 0.9%, while rural venues increased by 0.2%. City locations, down by just 0.3%, also moved closer to recovery.
Longer-term indicators also remained positive, with year-to-date footfall up 3.1% and average dwell time jumping 4.5%.
Warmer weather, alongside the early stages of the World Cup, further boosted premium and occasion-led drinks categories.
Cider recorded the strongest growth at 10.4% over the past four weeks, followed by craft beer at 8.2%, world lager at 7.2%, premium lager at 4.4% and stout at 3.9%.
Welcome boost
On a Moving Annual Total basis, stout remained the strongest-performing category, up 8.1%, while world lager increased by 3.7%, cider by 1.9% and premium lager by 0.8%.
Core lager declined by 5.2% last month, world 4% lager fell by 5.7% and ale was down 3.6%.
Commenting on the findings, Oxford Partnership CEO Alison Jordan said: “June delivered a welcome combination of warmer weather and major sporting occasions, helping to bring more consumers into hospitality venues and encouraging them to stay for longer.
“The increase in Rate of Sale is particularly encouraging. Although the number of licensed outlets continues to decline, those remaining in the market are generating more draught volume from each trading occasion.
“[Ahead of] the school holidays and traditional summer trading period, the sector has a strong calendar of demand-driving occasions ahead.
“However, the gap between food and drink spending growth shows that drink-led operators continue to face significant pressure from rising costs.”
