Hospitality sales rise by 4% in British cities 

Pubs, bars, and restaurants have reported positive sales in Britain’s major cities, despite high inflation making real-terms growth “very difficult”, according to CGA. 

Its latest ‘Top Cities’ report found that combined sales in Britain’s 10 most populous cities in the four weeks to 22 October 2022 were 4% higher than in the same period in 2019, while seven of the 10 cities recorded growth. 

The total number is reportedly in line with figures recorded by the separate Coffer CGA Business Tracker in recent weeks. However, with Britain’s inflation rate now exceeding 10%, sales were found to be “well below” pre-Covid comparatives in real terms. Logins are also still significantly short of the levels of 2019.

Manchester led the list of top cities, ahead of Birmingham, which made the top two for the fourth time in a row. Both cities recorded double-digit sales growth in the latest four-week period.

At the other end of the rankings, London is bottom for the third period in a row, with both sales and device check-ins still short of pre-Covid levels.           

CGA client director Chris Jeffrey said: “Our latest report confirms that public demand for eating and drinking out is stable. It highlights hospitality’s huge contribution to the vibrancy of city centres. 

“However, with consumers’ spending under pressure from rising costs in energy, food, mortgages and more, the post-Covid recovery will come under severe strain in the months ahead. Businesses have a crucial role to play in Britain’s economic growth, but they need targeted support to help them through these unprecedented challenges.”

Julian Ross, founder and CEO of Wireless Social, added: “It’s hugely encouraging to see growth across the sector, in terms of sales and footfall, in a number of the UK’s biggest cities. However, this growth will count for very little if the economic environment continues to be as volatile as it is currently. 

“With the World Cup and a restriction-free Christmas on the horizon, hospitality businesses can expect a boom in short-term sales. But it’s the weeks and months that follow that require attention, and businesses are going to need targeted support to continue to grow and develop on the other side.”