Britain’s leading hospitality groups recorded year-on-year sales growth of 1.7% in September, the latest edition of the CGA RSM Hospitality Business Tracker reveals.
It means managed operators have achieved like-for-like increases in eight of the nine months of 2024. Following recent below-inflation growth – of 1.5% in July and 1.3% in August – industry growth has matched the inflationary rate of 1.7% in September. While this is a welcome improvement, it is a sign of the continuing challenges to real terms growth, as the sector enters the crucial final quarter of the year. Total sales growth in September—including new venues opened during the last 12 months—was healthier at 3.7%.
The Tracker—produced by CGA by NIQ in partnership with RSM UK—shows September was a solid month for restaurants, with like-for-like sales rising 3.2%—double the rate of 1.5% for managed pubs. Bars extended a sustained period of negative numbers with a drop of 3.8%, while the on-the-go segment achieved 4.3% growth.
As was the case in August, trading in London was slightly softer than the rest of the country. Sales inside the M25 were 1.3% ahead of September 2023, while venues further afield achieved 1.9% growth.
Karl Chessell, director – hospitality operators and food, EMEA at CGA by NIQ, said:
“Against the comparative of a sunny start to autumn in 2023, September’s dismal weather made real-terms growth for hospitality groups challenging. Pubs faced a particularly difficult month, with the rain keeping people out of beer gardens and terraces—though it did at least drive some of them indoors to give restaurants a brighter time. While some positive economic indicators raise confidence for a brighter final quarter of 2024, hospitality continues to battle substantial headwinds, and the forthcoming Budget is an opportunity to give the sector the targeted support it deserves.”
Saxon Moseley, head of leisure and hospitality at RSM UK:
“September’s results continue the recent trend of steady but unremarkable growth for the sector, with consumer confidence and spending spooked by the government’s talk of “tough” decisions to come in this month’s Autumn Budget. Another concern for operators is the recent flurry of staff related legal and tax changes hitting the industry. With the new tipping legislation and the Employment Rights Bill already set to increase the cost burden of employing staff, a potential hike in National Insurance contributions alongside National Minimum Wage rate increases could push many businesses to the brink before the all-important festive trading season.”
