World Cup and Warmer Weather Boost UK Hospitality as Footfall Rises 4.5%
The UK hospitality sector entered the peak summer trading period with positive momentum in June, as warmer weather and the start of the World Cup helped drive footfall, dwell time and draught sales.
The latest Oxford Market Watch, produced by The Oxford Partnership using data from Vianet’s Beverage Metrics platform, shows footfall increased by 4.5% in the latest week compared with the same period last year.
Customers also spent more time in hospitality venues, with average dwell time rising 7.7% to 154 minutes. Average trading hours increased by 0.2%, while total consumer spend grew by 2.9%.
Food continued to lead spending growth, increasing by 3.8% compared with a 1.9% rise for drinks. Average spend per head remained resilient at £26.84.
Trading performance also strengthened, with total draught volumes increasing by 0.9% in the latest week and Rate of Sale rising by 3.0%. This indicates that venues are generating more volume from each trading occasion, despite the number of operating outlets falling year on year to 98,999.
World Cup strengthens the hospitality occasion
The World Cup, which began on 11 June, 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 reaching 8.0% in the latest week and 5.4% across the latest four weeks.
However, the improvement was not confined to the capital. Suburban outlets returned to growth at 0.9%, while rural venues increased by 0.2%. City locations, down by just 0.3%, also moved considerably closer to recovery.
Longer-term indicators remain encouraging, with year-to-date footfall up by 3.1% and average dwell time increasing by 4.5%.
Cider and premium categories lead growth
Warmer weather and the early stages of the World Cup helped deliver particularly strong growth across premium and occasion-led drinks categories.
During the latest four weeks, cider recorded the strongest Rate of Sale growth at 10.4%, followed by craft beer at 8.2%, world lager at 7.2%, premium lager at 4.4% and stout at 3.9%.
Stout remains the standout performer over the longer term, growing by 8.1% on a Moving Annual Total basis. World lager increased by 3.7%, cider by 1.9% and premium lager by 0.8%.
By contrast, more traditional volume-led segments remain under pressure. Core lager declined by 5.2% on a MAT basis, world 4% lager by 5.7% and ale by 3.6%.
Alison Jordan, CEO of The Oxford Partnership, 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.
“As the World Cup continued throughout July, alongside the school holidays and the 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.”