Sales warm up for pub groups in August but restaurants fade in the heat
Warm weather helped Britain’s leading managed pub groups to solid sales growth in August, the latest CGA RSM Hospitality Business Tracker reveals.
Pubs’ like-for-like sales were 2.8% ahead of August 2024, making it their best month since April. Sustained sunshine in many areas attracted consumers to pubs with gardens or terraces, and CGA by NIQ data shows it was a particularly strong period for sales of beer and cider.
However, the heat also reduced some people’s levels of eating-out, and restaurant groups recorded a 1.6% dip in sales in August. Bars’ sales were down by 5.0% from August 2024, and the on-the-go segment was 4.5% behind.
With all channels combined, the CGA RSM Hospitality Business Tracker shows like-for-like growth of 0.5% for hospitality operators in August. It is the Tracker’s first positive month since April and only the third of the year so far. Total sales, including at venues opened by groups in the last 12 months, were up by 3.9%—fractionally ahead of the UK’s current rate of inflation.
For the sixth month out of eight, hospitality operators in London were outperformed by groups further afield. Sales within the M25 were 0.3% up on August 2024, but they were ahead by 0.6% outside of the M25.
Saxon Moseley, Head of Leisure and Hospitality at RSM UK, said: “The hospitality industry returned to growth in August with positive like-for-like sales for the first time since April. While good news for the sector, the figures do mask differing fortunes, with restaurants in particular continuing to report real terms reductions in turnover. Of concern to operators will be the rise in the use of discounting to entice cautious consumers through the doors, which risks squeezing margins further amid rising input and labour costs. As we enter the final months of the year, all will be hoping that the budget will provide a boost to consumer confidence and offer some relief to a sector that has borne the brunt of this year’s tax rises.”
Karl Chessell, Director - Hospitality Operators and Food, EMEA at CGA by NIQ, said: “August’s figures complete a challenging Summer for hospitality. Ongoing price rises are making consumers cautious, and while the sunshine loosened some people’s spending in pubs, many restaurants have found it hard to generate the sustained real-terms growth that is needed to mitigate sharp increases in costs. The future remains bright for well-run, good-value and guest-focused hospitality groups, but the outlook remains difficult for some businesses as we move into the crucial final months of the year.”
CGA by NIQ collected sales figures directly from 121 leading managed groups for August's edition of the CGA RSM Hospitality Business Tracker, which provides authoritative monthly insights into Britain’s restaurant, pub and bar sales. Companies participating in the Tracker receive a fuller breakdown of trading that helps to benchmark performance and understand market trends. To join the cohort, contact Andrew Dean at andy.dean@nielseniq.com
Participants in the CGA RSM Hospitality Business Tracker: Adventure Leisure Ltd, All Star Lanes, Amber Taverns, Anglian Country Inns, Arc Inspirations, Azzurri Group (Ask Italian, Coco di Mama, Zizzi), Barburrito, Barworks, Beds and Bars, Big Fang Collective, Big Table Group (Banana Tree Restaurants, Bella Italia, Chiquito, Frankie & Benny’s, Las Iguanas), Bill’s Restaurants, Bleecker St Burger, Boisdale Ltd, Boom Battle Bar, Boston Tea Party, Boxpark, BrewDog, Burger & Lobster, Buzzworks Holdings Group, Byron, Chaiiwala, Chance and Counters, Coaching Inn Group Ltd, Comptoir Group Plc, Cote Restaurants, Creams Café, D & D London, Darwin & Wallace, Dishoom, Five Guys, Fortnum & Mason, Fuller Smith & Turner, Gaucho Grill, Giggling Squid, Glendola Leisure, Gordon Ramsay Restaurants, Greene King (Chef & Brewer, Hungry Horse, Flaming Grill), Hall & Woodhouse, Hawthorn Leisure, Heartwood Collection, Honest Burgers, HOP Vietnamese, Individual Restaurants, Kibou, Laine Pub Co, Lane 7, Le Bistrot Pierre, Liberation, Lina Stores, Loungers, Lucky Voice, Marston’s, McMullen & Sons Ltd, Megans, Mildreds, Mission Mars, Mitchells & Butlers (Harvester, Toby, Miller & Carter, All Bar One), MJMK Restaurants, Mojo Bar, Mowgli, Nando’s Restaurants, Neos Hospitality, New World Trading Company, Nightcap Plc, North Brewing Co, NQ64 Arcade Bars , Open House London, Parogon Pub Group, Peach Pubs, Pho, Pizza Express, Pizza Hut UK, Popeyes, Portobello Starboard Ltd, Prezzo, Public House Group, Punch Pub Co, Revolution Bars, Rick Stein Restaurants, Riley’s, Rosa’s Thai, Roxy Leisure, San Carlo, Shepherd Neame, Simmons Bars Group, Snug Bar, Southern Wind Group (Fazenda), St Austell, Star Pubs & Bars, State of Play Hospitality, Stonegate Pub Co (Slug & Lettuce, Yates’, Walkabout, Bermondsey Pub Company), Tasty Plc, TGI Fridays UK, The Alchemist, The Fulham Shore, The Restaurant Group, Thunderbird Fried Chicken, Tonkotsu, Topgolf Ltd, Tortilla, Tossed, Treetop Golf, True North Brew Co, Turtle Bay, Upham Pub Co, Urban Pubs & Bars, Various Eateries (Strada, Coppa Club), Village Hotels, Wagamama, Wasabi, Wells & Co, Whitbread (Beefeater, Brewers Fayre, Table Table), Wingstop, Yolk, YO! Sushi, Young’s and Yummy Collection.
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