Britain’s leading hospitality groups recorded year-on-year sales growth of 2.7% in November 2024, marking the first ‘real-terms growth’ since June this year.
According to the latest CGA RSM Hospitality Business Tracker: “The like-for-like figure is marginally above Britain’s rate of inflation as measured by the Consumer Price Index, and marks the first real-terms growth since June. It provides cautious optimism that consumers are prepared to increase their spending in restaurants, pubs and bars over the crucial Christmas and New Year period.”
The Tracker, produced by CGA by NIQ in partnership with RSM UK, revealed that total sales growth, including new venues opened during the last 12 months, rose to 4.7% in November.
The report stated: “Managed restaurants performed best of the main hospitality segments, with like-for-like growth of 3.6%. This just topped a 3.1% increase for pub groups, which benefited from Halloween celebrations at the start of November.
“Among other channels, bars continued a long run of negative numbers, with sales down by 5.3% from the same month in 2023. On-the-go venues recorded 2.8% growth.”
In addition, London venues outperformed businesses situated outside of the M25 corridor “for the first time since July”, as managed groups’ November sales inside the M25 were up by 3% year-on-year, compared to 2.5% growth for UK wide venues.
Meanwhile, the latest company insolvency statistics point to a more healthy business environment: accommodation and food services insolvencies were down 24% at 253 in October 2024 when compared to 332 on October 2023.
In addition, “insolvencies in the sector saw another month-on-month decrease from 261 in September 2024 to 253 in October”, according to the tax and accountancy firm RSM UK.
Saxon Moseley, partner and head of leisure and hospitality at RSM UK, commented: “An early Christmas present for operators as insolvencies hit the lowest level in two years and continued a downward trend since the summer. With the festive trading period well underway, operators will be hoping to build up some reserves to help mitigate the impact of looming cost increases.”
Karl Chessell, director for hospitality operators and food EMEA at CGA by NIQ, added: “After struggling for real-terms growth for much of the summer and autumn, November’s trading figures represent a solid if unspectacular recovery. They are particularly welcome in light of the new burden placed on hospitality by the government’s Budget, but costs and margins will continue to be under severe pressure for some time to come. With the vital Christmas and New Year trading period looming, groups will now be keeping everything crossed for favourable weather and strong consumer confidence so they can end 2024 on a high.”