Managed pubs and restaurants see 2.2% sales uplift in July

By Gemma McKenna

Published: 14 August, 2014

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Like-for-like sales at the UK's managed pub and restaurant chains rose 2.2% in July - making that the 16^th consecutive month of positive growth.

According to data from the latest Coffer Peach Business Tracker, which collects figures from 28 chains, the latest numbers point to increasing consumer confidence.

Eating out Managed pubs and restaurants see 2.2% sales hike in JulySource: Mitchells & ButlersEating out is a major driver, as wet-led pubs saw sales dip last month, according to the Coffer Peach Business Tracker

"Growth is more steady than spectacular, but the sector is becoming an important barometer of consumer confidence, as operators continue to invest in new sites and improving their offerings in what is a competitive market," said Peter Martin of CGA Peach, the business insight consultancy that produces the Tracker, in partnership with Coffer Group, Baker Tilly and UBS.

Total July sales, which include the impact of new openings, were up 4.3% on the same month last year.

"Looking at the long-term trend, year-on-year like-for-like sales were running 3.0% ahead for the 12 months up to the end of July, with total sales running 5.4% up," he said.

Businesses outside London did better in July than those in the capital, up 2.6% and 1.1% respectively against last year. This may be down to weather, school holidays, or increased 'staycationing'.

Food-led venues led the charge, with like-for-likes sales up 4.1%. Wet-led outlets saw sales decline on last year.

Trevor Watson, director at Davis Coffer Lyons, said: "Sustained like-for-like sales growth is particularly impressive when set against a background of accelerating new restaurant and pub openings nationwide. Travelling families returning from overseas holidays will be reminded of the quality, value for money and choice available in UK restaurants. As a nation we can be very proud of our highly developed eating out sector."

Jarrod Castle, leisure analyst at UBS Investment Research, said: "Like-for-like sales grew by 1.1% inside M25 in July. Outside the M25 they rose 2.6%. We view it as positive that recovery is accelerating in the regions. The 12-month moving average inside the M25 is now 3.5% on a LFL basis while outside it's 2.8% performance underlying the numbers is mixed but overall still positive."

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