Britain’s leading hospitality groups recorded year-on-year sales growth of 2.7% in November, the latest edition of the CGA RSM Hospitality Business Tracker reveals.
The like-for-like figure is marginally above Britain’s rate of inflation as measured by the Consumer Price Index, and marks the first real-terms growth since June.
It provides cautious optimism that consumers are prepared to increase their spending in restaurants, pubs, and bars over the crucial Christmas and New Year period.
The Tracker — produced by CGA by NIQ in partnership with RSM UK — shows total sales growth, including new venues opened during the last 12 months, stood at 4.7% in November. Managed restaurants performed best of the main hospitality segments, with like-for-like growth of 3.6%. This just topped a 3.1% increase for pub groups, which benefited from Halloween celebrations at the start of November.
Among other channels, bars continued a long run of negative numbers, with sales down by 5.3% from the same month in 2023. On-the-go venues recorded 2.8% growth.
Trading in London was slightly ahead of the rest of the country for the first time since July, the Tracker indicates. Managed groups’ November sales inside the M25 were up by 3% year-on-year, while venues beyond the M25 achieved 2.5% growth.
Budget burden
“After struggling for real-terms growth for much of the summer and autumn, November’s trading figures represent a solid if unspectacular recovery,” said Karl Chessell, director, hospitality operators and food, EMEA at CGA by NIQ.
“They are particularly welcome in light of the new burden placed on hospitality by the government’s Budget, but costs and margins will continue to be under severe pressure for some time to come.
“With the vital Christmas and New Year trading period looming, groups will now be keeping everything crossed for favourable weather and strong consumer confidence so they can end 2024 on a high.”
Saxon Moseley, head of leisure and hospitality at RSM UK, added: “November’s results represent a welcome rebound in spending after consumer confidence took a hit in the run-up to October’s autumn Budget, with like-for-like growth the highest since June and above the average for the 2024 year.
“Amidst a wave of tax rises and changes to legislation, which are set to significantly increase costs for the sector, the hospitality industry is in desperate need of revenue growth to balance the books.
“Operators will, therefore, be hoping this is the start of a sustained period of increased leisure spending, driven by rising real wages, falling interest rates, and improving consumer confidence. With the festive trading period in full swing, all operators will want this Christmas are strong sales to close out the year.”
