Hospitality sales flatten in October amid ‘disappointing’ growth

Restaurant, pub and bar group sales stalled in October, with figures reporting the fourth consecutive month of below-inflation like-for-like growth.

 

The latest CGA RSM Hospitality Business Tracker revealed Britain’s top managed hospitality groups grew by just 0.6% in October 2024, its lowest level since April this year.

 

While managed pubs recorded like-for-like growth of 1.5%, bar sales dropped by 4.2%, which was below October 2023 levels.

 

Delivery and on-the-go was the best-performing segment, with a 4.3% boost, which the tracker attributed to consumers trading down in a challenging economic climate.

 

Karl Chessell, director – hospitality operators and food, EMEA at CGA by NIQ, said: “It’s clearly been a tough autumn for many restaurants, pubs and bars, and real-terms growth remains elusive.

 

“Conditions haven’t been helped by the Budget, which is imposing significant new costs on businesses via National Insurance Contributions, while giving consumers little encouragement on spending. It is going to be a make-or-break Christmas for some operators, and while underlying demand for hospitality remains good, trading conditions are likely to remain very difficult well into 2025.”

 

Saxon Moseley, head of leisure and hospitality at RSM UK, added: “October’s disappointing results shows the industry essentially stalled last month, with poor weather and concerns about potential tax rises in the autumn Budget putting consumers off from venturing out.

 

“Looking ahead, operators will have little choice but to raise prices, although without a significant boost in consumer confidence, there is little guarantee this will translate into positive like-for-like sales.”

 

CGA by NIQ collected sales figures directly from 114 leading managed group businesses, including Azzurri Group, Banana Tree Restaurants, Giggling Squid, Heartwood and Loungers.

 

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