May bank holidays help boost hospitality sales by 5.6%
CGA, which collected sales figures directly from 82 companies for the latest tracker, found that managed groups’ total sales showed solid growth
Like-for-like sales within hospitality increased by 5.6% in May due to a succession of bank holidays that included an extended weekend for the King’s Coronation, according to the latest Coffer CGA Business Tracker.
Its data also shows that pubs benefited from widespread warm weather, with like-for-like sales 8.8% ahead of last May.
While trading at restaurants was “muted”, sales still increased by 2.7% and bars recorded a 6.6% drop in sales.
CGA, which collected sales figures directly from 82 companies for the latest tracker, found that while managed groups’ total sales showed solid growth, May trading was dampened by rail strikes and fragile consumer confidence.
In addition, the tracker also highlighted the ongoing recovery of London’s hospitality sector after the turmoil of the pandemic, as managed groups’ sales rose by an above-inflation 12.6% year-on-year, thanks in part to an influx of visitors for the Coronation – more than twice the level of the 4.9% growth beyond the M25 in May.
Karl Chessell, director of hospitality operators and food of EMEA at CGA by NIQ, said: “Managed hospitality groups continue to be challenged by soaring costs, the squeeze on consumer spending and rail travel disruption, making inflation-adjusted growth tough.
“Nevertheless, eight positive months in a row have shown that demand for eating and drinking out remains strong, especially around holidays and big national occasions. As inflation falls and discretionary spending stabilises, we can be cautiously optimistic about a return to real-terms growth in the second half of 2023.”
Paul Newman, head of leisure and hospitality at RSM UK, added: “Pub operators were the undoubted winners of May’s triple bank holiday, capitalising on coronation fever as customer purse strings were loosened by the warmer weather and news of energy price cap reductions.
“The next few months will be telling, particularly in London which experienced inflation-busting performance in May compared to the rest of the country. Now that the King’s Coronation is behind us, the capital’s long term recovery is dependent on further momentum from inbound tourism.”
