Hospitality groups see modest growth in pre-Christmas trading

Hospitality groups saw sales growth of 2.7% in the week running up to Christmas as trading was steady, if unspectacular.

According to a snapshot of the Hospitality Business Tracker, produced by CGA by NIQ in partnership with RSM UK, operators including Azzurri Group, Bill’s Restaurants, Honest Burgers, Wagamama and Youngs reported that sales increased for the week commencing 16th December 2024, compared to the same period in 2023.

Bars were the main beneficiaries of additional business, with 20.5% growth as revellers prioritised drinking and socialising. Food-led operators reported like-for-like growth of 3.4% in the on the go sector, and 2.1% in restaurants, while pubs saw only minor growth of 0.7%.

The overall growth echoes progress made in November, in which year-on-year sales also grew 2.7%. Marginally above inflation, it was the first positive real-terms growth since June.

Looking over a longer period, year-on-year sales failed to meet inflation in six out of the past 11 months so while the minor growth in November and December will be welcomed it will not have done a great deal to impact the fine margins available. With staffing costs set to rise in April thanks to an increase in National Insurance Contributions, hospitality operators will be welcoming the new year with caution.