Britain’s top hospitality groups recorded year-on-year sales growth of 2.9% in June 2024, the latest CGA RSM Hospitality Business Tracker reveals.
This figure is down slightly from May’s rate of 3.6%, but ahead of the current rate of inflation, and is the eighth period of growth in the last nine months.
Restaurants recorded year-on-year sales growth of 4.7%, compared to a growth of only 2.7% above June 2023 in the pub sector. While the Euros brought football fans into pubs for match days involving England and Scotland the damp weather kept people away from beer gardens and terraces, says CGA.
“June’s solid if unspectacular growth capped a decent first half of the year for Britain’s hospitality groups. The weather has been far from ideal for pubs and drinks suppliers, but England’s progress in the Euros has been a very welcome lift for venues screening games,” says Karl Chessell, director at CGA by NIQ.
“A good month for restaurants shows consumers remain eager to eat out, and we can be optimistic that people will loosen their spending as some cost pressures ease. Nevertheless, with the Tracker hovering only just above inflation, groups will have to work hard to achieve meaningful sales growth in the second half of 2024.”
The on-the-go segment achieved 4.0% growth, but sales in bars was down by 4.0%. Trading was notably stronger in London, which saw sales growth of 4.4%, compared to 2.5% outside the M25.
“Pub operators will be disappointed with the modest increase in sales generated by the early stages of the Euros. However, a second month of inflation beating growth for restaurants offers further evidence, and hope, that consumer purse strings are loosening against a backdrop of real wage increases and anticipated interest rate cuts,” says Saxon Moseley, head of leisure and hospitality at RSM UK.
“There was positive news for the industry in the King’s Speech around the apprenticeship levy amendments and night-time safety, but significant headwinds remain with confirmation of zero hours contracts reform and proposed increases to the national minimum wage. Combined with a lack of clarity around business rates, operators will be looking for further certainty from the new government in the second half of the year.”
