Wet weather softens growth for managed restaurants, pubs and bars in October

Britain’s leading hospitality groups saw year-on-year growth slow to 3.2% in October amid widespread poor weather, the new CGA RSM Hospitality Business Tracker reveals.

It is a 13th consecutive month of like-for-like growth for managed restaurants, pubs and bars. However, it represents a slowdown from a 5.9% rise in September, when brighter weather encouraged consumers out to eat and drink. By contrast, Storm Babet and the early stages of Storm Ciarán kept some diners and drinkers at home for periods in October. 

The Tracker, which is produced by CGA by NIQ in partnership with RSM UK, shows a brighter month for pubs, with fans watching the Rugby World Cup helping to lift sales 5.0% above October 2022. Managed restaurants had a softer month with growth of only 2.7%, while the bar segment endured another difficult month, with sales down by 7.8%.

For the 18th month in a row, groups achieved better growth in London than the rest of the country, the Tracker shows. Like-for-like sales within the M25 rose 4.8%, compared to 2.7% elsewhere.

Paul Newman, head of leisure and hospitality at RSM UK, said: “With poor weather in October to blame for much of the slowdown in eating and drinking-out growth, the sector will be desperate to see an end to the wet weather that has continued to hamper sales in the first half of November. The lead up to Christmas is a key trading period for hospitality but economic headwinds are dampening festive plans. 

Cuts to corporate funded Christmas parties combined with consumers tightening purse strings, the continued threat of rail strikes and the looming end to business rates support in March will come together to create considerable financial strain on businesses in the months ahead. The Chancellor needs to step up and use the Autumn Statement to provide renewed support for the hospitality sector which could otherwise see a swath of jobs being lost in the New Year.”

Karl Chessell, director - hospitality operators and food, EMEA at CGA by NIQ, said: “Thirteen successive months of year-on-year growth amid a cost of living crisis is encouraging, but there is no escaping the fact that rises are being driven by price rises and remain below inflation. The weather made for challenging trading conditions in many parts of the country, offsetting boosts from occasions like the Rugby World Cup and Halloween. Consumer demand for hospitality remains high, but venues will have to be at the top of their game to achieve real-terms growth over the crucial run-in to Christmas.”

CGA by NIQ collected sales figures directly from 94 leading managed groups for October’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 include: Adventure Bars, Adventure Leisure Ltd, All Star Lanes, Amber Taverns, Anglian Country Inns, Arc Inspirations, Azzurri Group (Ask Italian, Coco di Mama, Zizzi), Banana Tree Restaurants, Beds and Bars, Big Table Group (Bella Italia, Las Iguanas), Bill’s Restaurants, Bone Daddies, Boxpark, Brasserie Bar Co, BrewDog, Burger & Lobster, Buzzworks Holdings Group, Byron,  Coaching Inn Group Ltd, Comptoir Group Plc, Cote Restaurants, Darwin & Wallace, Dishoom, Dominion Hospitality, Five Guys, Fortnum & Mason, Fuller Smith & Turner, Gaucho Grill, Giggling Squid, Greene King (Chef & Brewer, Hungry Horse, Flaming Grill), Gusto Restaurants, Hall & Woodhouse, Hawthorn Leisure,Honest Burgers, HOP Vietnamese, Individual Restaurants, Island Poké, Junkyard Golf Club, Kibou, Laine Pub Co, Le Bistrot Pierre, Liberation, Lina Stores, Loungers, Marston's, McMullen & Sons Ltd, Mildreds, Mitchells & Butlers (Harvester, Toby, Miller & Carter, All Bar One), MJMK Restaurants, Mowgli, Nando’s Restaurants, New World Trading Company, North Brewing Co, Oakman Inns, Parogon Pub Group, Peach Pubs, Pho, Pizza Express, Pizza Hut UK, Portobello Starboard Ltd, Prezzo, Punch Pub Co, Pure, Rekom UK, Restaurant Group (Barburrito, Frankie & Bennys, Chiquitos, Brunning & Price), Revolution Bars, Rick Stein Restaurants, Riley’s, Rosa’s Thai, Rola Wala, 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),TGI Fridays UK, The Alchemist, Tortilla, Tonkotsu, True North Brew Co, Upham Pub Co, Various Eateries (Strada, Coppa Club), Village Hotels, Wagamama, Wasabi,  Whitbread (Beefeater, Brewers Fayre, Table Table), Wingstop, YO! Sushi and Young’s.

About CGA by NIQ

CGA by NIQ provides definitive On Premise consumer intelligence that reveals new pathways to growth for the world’s most successful food and drink brands. With more than 30 years of best-in-class research, data, and analytics, CGA by NIQ provides the Full View(TM).

CGA by NIQ works with food and beverage suppliers, consumer brand owners, wholesalers, government entities, pubs, bars, and restaurants to protect and shape the future of the On Premise experience. Using the most complete and clear understanding of measurement and insights, CGA by NIQ provides a competitive edge to guide winning strategies for On Premise businesses.

NIQ was founded in 1923 and is an Advent International portfolio company. For more information, visit www.NIQ.com or www.cgastrategy.com.   

About RSM UK

RSM UK is a leading provider of audit, tax and consulting services. As an integrated team with nearly 4,900 partners and staff operating from 31 locations across the UK, we have a culture of understanding what it means to deliver value, and to value what we do.

As part of the RSM International network, we have access to more than 57,000 people in more than 120 countries. Our global presence helps us to meet the needs of clients who are trading and expanding internationally.