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June sales growth for restaurant and pub groups

19 | 07 | 13

June was a positive month for the eating out industry, as the UK's pub and restaurant groups enjoyed a sales increase compared to the same month last year.

This positive news has been reported by the Coffer Peach Business Tracker, which monitors the performance of 27 leading companies and is produced by Peach Factory in partnership with the Coffer Group, Baker Tilly and UBS. 

Growth of 1.9 per cent

According to the tracker, restaurant and pub sales were up 1.9 per cent in June 2013, compared to the year before. The increase is actually 4.8 per cent if the impact of new openings is taken into account. 

There was also a rise compared to May, with sales growing by 1.2 per cent. Peter Martin of Peach Factory said this suggests a "real if modest" recovery is on the cards for the industry after the negative impact of the bad winter and spring weather. 

However, the tracker report claimed last June's figures may be distorted due to the Queen's Jubilee and Euro 2012 football tournament taking place during the month, which will have boosted pub sales but hindered the casual dining sector. 

Jarrod Castle, leisure analyst at UBS European Leisure Research, said further growth should be recorded in July due to the warm and sunny weather that has been experienced across the country. He warned it may be difficult to draw conclusions from August's figures as last year's Olympic games will cause considerable distortion.

London the "star performer"

Mr Martin said pubs and restaurants in London enjoyed the best level of performance in June. Indeed, like-for-like sales were up by 5.1 per cent in the capital, which is well above the national average. 

"London saw strong trading from both chain restaurants and managed pubs. Outside of the capital, however, pub sales were flat, with drink-led pubs seeing a like-for-like sales decline. Food remains the growth driver in the managed pub sector," he commented.

Mark Sheehan, managing director of Coffer Corporate Leisure, said sales figures for the provinces are disappointing, as a rise of confidence in the sector has not been reflected in sales. However, he expects volumes to increase in the coming months.

Brits 'love to eat out'

Head of leisure and hospitality at Baker Tilly Paul Newman has interpreted the tracker's results positively.
"The British consumer’s love affair with eating and drinking out continues to bloom, with the warm weather proving a very effective aphrodisiac," he stated.

He claimed that with the UK's gross domestic product forecasts being upgraded and an improvement in consumer confidence, the outlook is encouraging for the sector. 

This will be welcome news for commercial catering equipment suppliers, whose success is closely linked to that of the eating out industry.

Mr Newman said a number of firms have made significant investments in new openings in the past month, such as Shake Shack and Five Guys in London. He believes competition in the sector is becoming fierce and advised businesses to "ensure they have the financial flexibility to continue responding to the discerning UK consumer’s changing needs".ADNFCR-16001031-ID-801614734-ADNFCR

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