Drink led outlets outperformed casual dining chains last month

By Erin Smith

Published: 22 June, 2016

Drink led pubs fared better than casual dining outlets last month according to most recent figures released by Coffer Peach Business Tracker.

"Overall, casual dining chains suffered most, with collective like-for-likes down a hefty 5.6% on last May, while pub groups actually saw a 1.0% increase in same store sales for the month, driven mainly by drink-led outlets which were up 4.5%," said Peter Martin, vice president of CGA Peach, the business insight consultancy that produces the Tracker, in partnership with Coffer Group, RSM and UBS.

"It was definitely a tale of two markets last month," he added.

London also fared better than the rest of the country with like-for-like sales up 0.9%. London pubs and bars were up 3.8%, against a 2.2% drop in same-store sales outside the M25.

Same-store sales in pubs and restaurants saw sales slide in May with like-for-like trading down 1.4% compared to last year.

According to analysts the economic uncertainty around the EU referendum vote and the movement of school breaks are dragging figures down.

"The pub and restaurant sector has been dealt an undeniable blow by declining consumer confidence over the course of this year. For the most part, this has stemmed from general economic fears that have been worsened by the impending EU Referendum next week," said Mark Sheehan, managing director at Coffer Corporate Leisure.

"The later school half-term break, which this year fell in June against May last year, appears to have been a major factor - demonstrating how important the family market still is to the sector," explained Martin.

According to Martin June could see a bump as the school year holiday moved which will help boost numbers overall.

"The distortion caused by the school holiday shift will work its way out next month, and operators will be encouraged by early indications of bumper sales in the first week of June, which also enjoyed good weather," he said.

The Euro 2016 football tournament is also another reason to be optimistic about the June figures which will be released next month.

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