Like-for-like sales remain flat for managed groups

Last month's figures were bolstered by the Euros tournament and there were periods of unusually hot weather that positively impacted outlets with outdoor areas, whilst deterring consumers from visiting indoor outlets. 

“Flat sales on 2019 numbers in the face of rampant inflationary pressure on every front may appear catastrophic but these number show the steady progress hospitality is making,” says Mark Sheehan, managing director at Coffer Corporate Leisure.

“Those that survive may well thrive but for operators these improvements need to continue. 2019 is the benchmark for now but it is not realistic for businesses to survive at these levels.”

The results from the Tracker — produced by CGA by NielsenIQ in partnership with The Coffer Group and RSM UK — represents a drop in like-for-like sales following the strongest month of like-for-like growth this year in June, and given high levels of inflation since 2019, sales are significantly behind pre-pandemic levels in real terms.
Restaurants were the strongest performing of the Tracker's three hospitality segments in July, with like-for-like sales at +1.3% vs three years ago. Managed groups’ dine-in only sales were down 8% suggesting performance for the segment was in part supported by consumers opting for deliveries.
 
Pubs continued to perform reasonably well with LFL sales growth down by 0.6%, whilst bars’ fared worse with their LFL sales dropping to -1.7%.
 
The Tracker demonstrates that trading in London continues to struggle, with -2% LFL sales growth, compared to a decline of 1% in June and a flat performance in May. Beyond the M25, LFL sales were 0.7% as ongoing rail strikes continued to significantly reduce footfall into central London.
 
Overall like-for-likes are flat compared to 4.7% growth in June (which benefited from bank holidays and the Jubilee) and in decline by 3.3% when sales from deliveries and takeaways are removed from this metric.

“A flat rate of LFL sales reflects the slow but steady trajectory of the past few months. Operators are acutely aware of the challenges that lie ahead during the second half of 2022,” says Karl Chessell, director - hospitality operators and food, EMEA at CGA.

“Inflation, rising costs, supply chain issues, and staffing challenges are impacting businesses. But the hospitality sector continues to demonstrate extraordinary resilience and remains an important channel for investment long term.”