Managed groups see sales recover in January
Total sales across these groups were 3% higher than pre-pandemic trading in January 2019, and represent a ‘solid recovery’ from December
Rising consumer confidence about safety and the easing of restrictions have boosted sales across managed pub, bar, and restaurant groups in January, according to the latest Coffer CGA Business Tracker.
Total sales across these groups were 3% higher than pre-pandemic trading in January 2019, and represent a “solid recovery” from December, when heavy restrictions were still in place and sales fell 11% below the levels of 2019.
Restaurants performed the strongest in January, recording 4% growth against January 2019, while pubs were up by 2%. However, bars saw sales slip 3%, as the requirement for vaccination passes and ongoing concerns about crowded venues affected business.
Much like recent months, trading was “significantly weaker” in London than elsewhere in Britain, dipping by 8% as office workers and tourists stayed away, yet sales beyond the M25 were up by 6% on January 2019.
Karl Chessell, director – hospitality operators and food, EMEA at CGA, said: “After a bleak December for managed groups, January brought a reasonable revival. Growth for restaurants was particularly encouraging, and the challenging London and late-night markets should hopefully pick up as people return to offices and Covid-19 restrictions wind down.
“However, it’s important to note that sales growth remains below inflation. With some businesses vulnerable after a tough end to 2021, and consumers facing mounting costs of living, hospitality’s road to recovery still has a long way to run.”
Mark Sheehan, managing director at Coffer Corporate Leisure, added: “January saw steady improvement throughout from a slow start. It was only on 25 January that the government stopped guidance to work from home where possible. As working habits return closer to normal, we expect to see eating and drinking out to rebound steadily. London and other city centres are seeing very good numbers. There is cautious optimism for the sector.”
Paul Newman, head of leisure and hospitality at RSM, concluded: “January’s bounce back after the disappointment of December sees the sector make an encouraging start to the new financial year. With trading restrictions finally lifted and the Omicron variant easing, customer footfall numbers and card spending are getting stronger week by week.
“The sector is not without its challenges as Covid-19 reliefs begin to fall away but there is a strong sense of optimism among many operators, particularly around the return of office workers and tourists to city centres. We expect to see further consolidation in the sector over the coming months, led by a number of well capitalised larger groups looking to grow their estates and take advantage of the resurgence of demand in the pub and casual dining sectors.”
