Home / Latest News / Pub And Restaurant Groups See Sales Take A Dip In April

Pub And Restaurant Groups See Sales Take A Dip In April

Britain’s managed pub and restaurant groups saw sales slip in April. Latest figures from the Coffer Peach Business Tracker showed collective like-for-likes down 1.2 per cent on the same month last year – with earlier Easter holidays seen as the main factor.

‘Easter, which is always a busy time for the eating and drinking out market, last year fell in mid-April, while this time it straddled March and April. This will certainly have had an effect on sales comparisons, and looks like to have outweighed the boost to trade that the hot-spell at the end of the month will have brought to the pub sector, in particular,’ said Karl Chessell, Business Unit Director of Food & Retail at CGA, the business insight consultancy that produces the Tracker, in partnership with Coffer Group and RSM.

London fared better than the rest of Britain, with April like-for-likes marginally up by 0.2 per cent against a 1.6 per cent fall for outside the M25. There was little difference, however, between the performance of managed pubs and restaurants, with the former down 1.2 per cent and the latter down 1.1 per cent.

‘The only good news is that April trading was much better than the disastrous, snow-hit trading seen in March, when sector like-for-like sales tumbled 3.1 per cent,’ added Chessell. ‘The overall feeling is that we are in an essentially flat market.’

David Coffer, Chairman of The Coffer Group said: ‘The results reflect the general feeling of political and economic uncertainty translating into a stay at home mentality.  We believe, however, the recent change in the weather and the ‘royal wedding feel good factor’ will lift the mood nationally and hopefully lead into a stronger summer.

‘We also feel the ‘let’s bash restaurants syndrome’ expressed constantly in the media is unhelpful on the basis that ‘nobody wants a loser’. This view is definitely being overcooked, despite reflecting the casualties in groups who have over expanded.  Nevertheless, we are finding demand for restaurants and licensed premises to be as strong as ever with an increasing number of concepts, designs looking for sites.  This adjustment was long overdue and historically such a change has led to an enriched sector with ever more sophisticated and imaginative offers and operators.’

Paul Newman, head of leisure and hospitality at RSM, said: ‘A drop in sales this April was inevitable given the earlier timing of Easter this year. A dip of only 1.2 per cent will be viewed with cautious optimism especially when compared with the 4.2 per cent fall in like-for-like retail sales announced for the same period. After enduring a long and hard winter, operators will hope that the uptick in sales on the back of the recent bank holiday scorcher marks the start of a sustainable shift in consumer confidence.’

Underlying like-for-like growth for the 39 companies in the Tracker cohort, which represents both large and small groups, was running at just 0.4 per cent for the 12 months to the end of April.

Total sales growth across the cohort, which includes the effect of new openings, was 1.4 per cent in April, reflecting the slowdown in roll-out plans, and running at 3.3 per cent for the 12 months to the end of the month.

About News

x

Check Also

Leeds Bartender Wins the Southern Showdown 2018

Lee Jones of the Smokestack bar in Leeds has been declared winner of the Southern Comfort Southern Showdown 2018 cocktail contest, after a hard-fought ...