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Pubs and bars signal optimism as restaurant sector continues to suffer

Some 45% of leaders believe that consumers will eat out less frequently in the next six months, with only 9% suggesting they will do so more often, as rising costs, intense competition and uncertainties over Brexit all conspire to deflate consumer confidence.

With just 41% of business leaders “fairly or very optimistic” about the prospects of the eating and drinking market over the next 12 months, down 6% from last year, 65% remained optimistic about their own business prospects, although this figure stood at 75% a year ago.

One notable contrast between those surveyed was revealed by the contrasting levels of optimism between drinks-led business operators and those focused on food.

Sixty one per cent of drinks-led business said they felt optimistic about the market over the next 12 months, in stark contrast with just 33% of food-led business leaders.

Lending weight to this predicted trend, the report cited CGA’s Coffer Peach Business Tracker, which showed far stronger like-for-like sales growth for managed drink-led operators in the 12 months to Q2 2019 than food-led outlets.

CGA group chief executive Phil Tate said: “The patchy optimism among food-led business leaders confirms that 2019 has been a rough ride, with casual dining operators buffeted by ferocious headwinds and several high profile brands struggling.

“But leaders of drink-led businesses clearly feel they have much more to look forward to - a sign that after many years of pub closures and restaurant expansion, the tables have turned.”

The Report also emphasised the need for investment to retain a competitive edge, revealing that a third of business leaders are planning to up the speed of refurbishments this year, with focus on “making the most of their existing assets rather than expansion”.

• CGA
• Restaurants
• Bars
• sales
• pubs
• consumer confidence
• 2019
• hospitality sector
• Busines Confidence Survey
• Q2
• business leaders
• outlook