Sizzling September boosts pub and restaurant sales
According to the latest Coffer Peach Business Tracker data, collective like-for-like sales grew by 2.8 per cent, while total sales – including the effect of new openings – were up 6.9 per cent from September 2010.
Peter Martin of Peach Factory said: “Despite the gloom in other parts of the economy, the public is still prepared to go out to eat and drink – and the hot weather at the end of the month provided an added boost for business.
“Both pubs and restaurants saw sales ahead of last year, although pubs saw the biggest boost from the good weather.”
The September figures follow a 0.6 per cent increase in sales in August, despite the effects of the riots, and a one per cent increase in July. Month-on-month, September sales were 18 per cent up on August, reflecting the fact that it was a five-week against a four-week month.
“The eating out market is proving remarkably resilient,” added Martin. “Although it remains a fiercely competitive marketplace. Consumers are turning to brands increasingly in search of quality, consistency and value, but the fight for customer loyalty is intense, with both pub and casual dining chains investing heavily in new concepts and revamping and rolling-out existing offerings.”
Outperforming retail sector
As a result, the eating and drinking out-of-home market has continued to outperform the retail sector. According to the British Retail Consortium / KPMG Retail Sales Monitor, like-for-like retail sales were only 0.3 per cent higher on September 2010, with total sales up 2.5%.
“However, operators are aware that the market will remain tough,” added Martin. Last month the Asda Income Tracker suggested that UK families were £14 a week worse off in August 2011 than in 2010.
David Coffer, chairman of the Coffer Group, commented: “The September figures are indicative of the effect of post-riot relief and some tremendous weather. It will be interesting and relieving for most operators if these high comparative figures continue the trend.”
The Coffer Peach Business Tracker monitors sales performance across 18 major pub and restaurant companies including Whitbread, Gondola and Tragus. Last month’s report highlighted that pub and restaurant chains saw marginal growth in consumer spending for August despite the negative effects of the riots.
