Hospitality sales rise 2.7% ahead of Xmas celebrations
The Tracker’s findings provide ‘cautious optimism’ that consumers are prepared to increase their spending in restaurants, pubs and bars over Christmas and New Year
Hospitality groups recorded year-on-year sales growth of 2.7% in November 2024, according to CGA and RSM’s latest Hospitality Business Tracker.
The like-for-like figure last month was found to be “marginally” above Britain’s rate of inflation as measured by the Consumer Price Index, and marks the first real-terms growth since June.
According to CGA and RSM, the tracker’s findings provide “cautious optimism” that consumers are prepared to increase their spending in restaurants, pubs and bars over Christmas and New Year.
The tracker also showed total sales growth in November, including a rise in new venue openings during the last 12 months to 4.7% as of last month.
Meanwhile, managed restaurants performed best of the main hospitality segments, with like-for-like growth of 3.6%. This just topped a 3.1% rise for pubs, which benefited from Halloween celebrations at the start of November.
However, bars continued a long run of negative numbers, with sales down by 5.3% from the same month in 2023, while on-the-go venues recorded 2.8% growth.
In addition, London trading was found to be slightly ahead of the rest of the country for the first time since July, as managed groups reported that November sales inside the M25 were up by 3% year-on-year. Venues beyond the M25 achieved 2.5% growth.
Karl Chessell, director at CGA by NIQ, said: “After struggling for real-terms growth for much of the summer and autumn, November’s trading figures represent a solid if unspectacular recovery. They are particularly welcome in light of the new burden placed on hospitality by the government’s Budget, but costs and margins will continue to be under severe pressure for some time to come.
“With the vital Christmas and New Year trading period looming, groups will now be keeping everything crossed for favourable weather and strong consumer confidence so they can end 2024 on a high.”
Saxon Moseley, head of leisure and hospitality at RSM UK, added: “November’s results represent a welcome rebound in spending after consumer confidence took a hit in the run up to October’s Autumn Budget, with like for like growth the highest since June and above the average for the 2024 year.
“Amidst a wave of tax rises and changes to legislation, which are set to significantly increase costs for the sector, the hospitality industry is in desperate need of revenue growth to balance the books.”
