Northern hospitality venues welcome 7.2% sales growth in 2023
New research revealed that northern cities such as Liverpool (-0.8%), Newcastle (-1.2%) and Chester (-1%) have proven more resilient than London (-2.2%) and the national average in terms of the number of outlets
Hospitality vendors in the North have demonstrated growth and resilience over the past year, averaging 7.2% sales growth despite the cost of living crisis and escalating business rates.
New research conducted by Northern Restaurant and Bar in partnership with CGA by NielsenIQ revealed all northern England cities saw a growth in sales in managed pubs, bars and restaurants, with an average of 7.2% growth. Newcastle (12.7%) and York (9.2%) lead the uptrend, followed by Sheffield (7.1%), Liverpool (6.8%), Chester (5.6%), Manchester (4.8%), and Leeds (4.4%).
Despite a 2.5% decline in total venue numbers across the British pub, bar, and restaurant sector in the latest year to October, the industry remained dynamic, witnessing an average of 48 new openings per week. This ongoing activity signals a significant level of renewal.
Business leaders are also generally optimistic about the prospects of their own business in the next 12 months. This sentiment is stronger in the north, where 59% of leaders expressed confidence in the sector, compared to 51% in the south.
Notably, northern cities such as Liverpool (-0.8%), Newcastle (-1.2%), and Chester (-1%) have proven more resilient than London (-2.2%) and the national average, in terms of the number of outlets. With 26% of new openings in the North, this resilience is particularly noteworthy against a backdrop of rising energy prices, food and drink inflation, and increased National Living Wages.
Consumer sentiment across the country is also positive, with 4 in 5 stating that they are satisfied with the quality of the overall experience during recent visits to pubs, bars and restaurants. A higher percentage of customers in the north are “very satisfied” with the quality of food, service, drinks and overall experience, than the south.
The research also found how experience-led concepts are well positioned to thrive in the next 12 months. Northern businesses like Mission Mars, Roxy Leisure and Graffiti Spirits Group are not only shaping a dynamic hospitality landscape in the north but also rapidly expanding to other regions.
Siobhan Thompson, event manager for NRB24, said: “The results underscore the strength, resilience, and ambition of Northern hospitality establishments. Despite shared challenges in the sector, operators in cities like Liverpool, Manchester, Sheffield, and Newcastle have demonstrated innovation and optimism in the face of issues such as rising utility prices, food inflation, and staffing concerns.
“While challenges persist, it’s heartening to witness the industry’s adaptability and positivity. The surge in new concepts, site launches, and the enthusiastic influx of customers through the doors offer a much-needed burst of positivity.”
Thompson concluded: “NRB plays a crucial role as the first opportunity of the year for the industry to unite, offering support and a platform to celebrate Northern hospitality. It serves as an invaluable space for forward-thinking operators to share stories, exchange advice, and connect with suppliers, fostering innovation and inspiration. With brilliant operators, hopefully fuelled by ideas and inspiration from NRB, I know Northern hospitality can continue to thrive.”
