Restaurant and pub sales up 3.4% in November
This marks the 20th consecutive month of growth.
London grew faster than the rest of the country, with like-for-like sales up 6.1 per cent, compared to 2.4 per cent outside the M25.
Food-led growth
“Managed pub groups saw 2.8 per cent like-for-like growth, with casual dining chains up 4.8 per cent,” said Peter Martin, vice president of CGA Peach.
“Eating out is now ingrained in the British way of life, and for the pub groups in our sample, food sales are still growing faster than drink – up 4 per cent in November against a 1.5 per cent increase for drinks. Overall, food sales account for an average 45 per cent of revenue in managed pub chains.”
Total sales, including the impact of new openings, were up 6.8 per cent against last November across the 30 restaurant, bar and pub companies tracked. Total sales for restaurant groups in particular went up by 10 per cent, reflecting the continued roll-out of casual dining brands, particularly outside of London.
“Looking at the underlying trend, the year-on-year like-for-like rate at the end of November was running at 2.9 per cent up on 2013,” added Martin.
Sustained consumer spending
Trevor Watson, director at Davis Coffer Lyons, said: “The figures continue to show steady growth in the sector. Consumer spending power will be sustained in 2015 as a result of falling oil prices, which will help to ensure the casual dining and pub sectors continue on their upward trajectory in terms of sales figures.
“The London market continues to be the principal engine of the sector and we do not see any reason for this to change in the immediate future.”
Paul Newman, head of leisure and hospitality at Baker Tilly, added: “This month we again see another set of cracking results for a jubilant sector. Total sales growth continues to build a head of steam as the evenings have grown longer, posting 6.8 per cent growth, which represents the highest monthly sales increase since April.
“The strong recent sales growth figures are particularly impressive against a backdrop of stagnant UK wages. The storming success of the recent Chilango and River Cottage fundraisings and the ensuing ownership battles for larger chains such as ASK/Zizzi and TGI Friday’s are testament to the sector's attractiveness to small and large investors alike.”
