Hospitality sees YoY sales rise 2.9% in June
While the Euros brought sports fans into pubs for match days involving England and Scotland, the damp weather kept people away from beer gardens and terraces
Hospitality groups recorded year-on-year sales growth of 2.9% in June, down slightly from May’s rate of 3.6% but ahead of the current rate of inflation, according to the latest CGA RSM Hospitality Business Tracker.
This marks the eighth period of growth in the last nine months.
During June, restaurants were the best-performing channel, with year-on-year sales growth of 4.7%.
While the Euros brought sports fans into pubs for match days involving England and Scotland, the damp weather kept people away from beer gardens and terraces, and sales in this channel rose only 2.7% above June 2023.
Meanwhile, the on-the-go segment achieved 4% growth, where bars’ growth fell by 4%.
Trading was notably stronger in London, where the Tracker recorded sales growth of 4.4%, compared to 2.5% outside the M25.
This showed that the capital has outpaced Britain as a whole for all but one month in 2024.
Karl Chessell, director at CGA by NIQ, said: “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.
“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.”
He added: “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.”
Saxon Moseley, head of leisure and hospitality at RSM UK, added: “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.”
He added: “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.”
