Groups have now achieved like-for-like increases in every month of 2024 except April.
However, it is a second successive month of below-inflation growth, and the Tracker has topped 4% only once since the start of the year. Total sales growth in August, including new venues opened during the last 12 months, stood at 3.7%.
“August’s figures complete a modest summer for hospitality groups, and with the weather and consumers’ confidence both underwhelming, real-terms growth has been elusive,” says Karl Chessell, director – hospitality operators and food, EMEA at CGA by NIQ.
The Tracker — produced by CGA by NIQ in partnership with RSM UK — shows managed pubs outperformed the sector as a whole in August, with year-on-year growth of 2.9% despite disappointing weather.
Restaurants recorded a 0.8% increase, but bars continued a long run of negative numbers with a drop of 9.0%. The on-the-go segment achieved 5.0% growth.
Sales rose by 1.2% inside the M25 in August, while venues further afield fractionally outperformed with 1.4% growth. It is only the second time this year that the capital has recorded weaker figures than the rest of the country.
“After a lacklustre summer, the hospitality sector will be hoping for further government support in the Autumn Budget, including business rates reform, a reduction in VAT to bring the sector in line with our European counterparts and a fall in employer national insurance contributions to help operators cope with increases in wages,” says Saxon Moseley, head of leisure and hospitality at RSM UK.
“All these things can help reduce the cost burden on hospitality and, crucially, stimulate sales growth. However, a ‘painful’ Budget could dent consumer confidence and with it, discretionary spending and business investment which would hold back any recovery and apply more pressure ahead of the all-important festive trading season.”
