Hospitality sales rise in city centres ahead of Christmas rush

Pubs, restaurants and bars have “made a good start” to the festive season in Britain’s major cities, according to research from CGA by NielsenIQ and connectivity solutions provider Wireless Social.

Their latest ‘Top Cities’ report found that sales in the four weeks to 19 November were ahead of the same period in 2019 in eight of Britain’s 10 most populous cities. 

Across the 10 cities, sales growth totalled around 4%, in line with the Coffer CGA Business Tracker which shows like-for-like sales 5% higher against 2019 levels. 

Six of the 10 cities also recorded an increase in device log-ins, and while this was “likely driven by the start of the festive season”, CGA and Wireless Social said it was a “promising sign that city-centre footfall is beginning to return to pre-Covid-19 patterns in most cities”.

Nonetheless, they warned that rising energy, food and other costs are putting both hospitality businesses’ margins and consumers’ spending under “severe strain”, and that most operators’ city-centre sales are still “well behind” the levels of both 2021 and 2019.

The ’Top Cities’ report combines CGA’s sales data with Wireless Social’s check-in statistics to provide a ‘vibrancy’ ranking of the top 10 cities.  Manchester topped the list for the third time in a row, with double-digit sales growth. It finished ahead of Glasgow and Birmingham, which both featured in the top three for the fifth successive period. 

London was bottom for the fourth period in a row however, though sales and check-ins in the capital continued to move closer to pre-Covid levels. 

CGA client director Chris Jeffrey said: “Restaurants, pubs and bars have steadily built back from COVID-19 turmoil over the course of 2022, and these latest figures are encouraging for the key festive season. 

“The World Cup, Christmas markets and parties should all deliver good footfall and spending, but the costs crisis and prospect of more rail strikes cast a shadow over the crucial final weeks of the year. Consumers are as keen as ever to eat and drink out, but with so many challenges not of their own making, some city-centre businesses face a make-or-break Christmas.”

Julian Ross, founder and CEO of Wireless Social, added: “There is continued appetite from consumers to go out and visit their favourite hospitality venues, which we’re seeing in this latest report. The much-needed footfall and trading boost on the back of the World Cup and the festive season is extremely welcome indeed.

“However, the industry is still fraught with challenges, not least by the threat of the rail strike action and the cost-of-doing-business crisis, and the new year ahead is going to be very tough for the sector as it continues on the path to recovery.”