Restaurant and pub groups see November sales boost

Britain’s leading hospitality groups recorded year-on-year sales growth of 2.7% in November 2024, the latest edition of the CGA RSM Hospitality Business Tracker reveals.

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. 

Analysts said it provided “cautious optimism” that consumers were 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— collects data from 115 managed groups, including Bill’s Restaurants, Whitbread, Rick Stein Restaurants and Stonegate Pub Company.

Total sales growth, including new venues opened during the last 12 months, stood at 4.7% in November. 

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.

However, 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.

Trading in London was slightly ahead of the rest of the country for the first time since July. Managed groups’ sales inside the M25 in November were up 3% year-on-year, while venues outside the M25 achieved 2.5% growth.

Karl Chessell, director – hospitality operators and food, EMEA at CGA by NIQ, said: “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.”

Saxon Moseley, head of leisure and hospitality at RSM UK, said: “Operators will therefore be hoping this is the start of a sustained period of increased leisure spending, driven by rising real wages, falling interest rates and improving consumer confidence. With the festive trading period in full swing, all operators will want this Christmas are strong sales to close out the year.”

Photo: Master1305/Shutterstock