Restaurant, pub and bar sales up 6.7% in June
The bars segment completed a difficult first half of 2023 with an 8.4% drop in sales
Like-for-like sales in managed restaurants, pubs and bars were up 6.7% in June, according to data from CGA, the Coffer Group and RSM, the 9th consecutive month of growth.
The warm weather brought consumers out to drink in pubs, especially those with beer gardens and terraces, and as a result sales in pubs were up by 10.8% on June 2022.
However, some of this growth came at the expense of restaurants, where sales finished 3.2% ahead year-on-year.
The bars segment completed a difficult first half of 2023 with an 8.4% drop in sales.
Growth was even across the UK as like-for-like sales growth within the M25 were 8.1% as London continued its post-COVID recovery, just ahead of the 6.7% increase beyond the M25.
Karl Chessell, director, hospitality operators and food, EMEA at CGA by NIQ, said: “These numbers highlight the impressive resilience of managed hospitality groups despite rising costs for businesses and consumers. People remain eager to visit pubs, bars and restaurants when they can, especially during warm weather, and pub operators and suppliers will hope for more high temperatures as the summer holiday season begins.
“Though it’s important to remember that sunshine isn’t so positive for indoor-only restaurants. More interest rate rises may dampen consumers’ confidence and cost pressures remain for operators, but the long-term outlook for the sector remains good.”
Saxon Moseley, partner in RSM UK’s leisure and hospitality, added” “With June officially the hottest on record, pubs were the main beneficiaries as customers opted to make the most of the sunshine and fine weather.
“While restaurant like-for-likes remained stubbornly below inflation, the fact they continue to grow in the face of rising mortgage costs is a testament to the resilience of the sector and consumer appetite for eating out. With food price inflation falling for the fourth consecutive month, operators will be hopeful that margins begin to improve as we head into the summer holiday season.”
