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Morning Briefing for pub, restaurant and food wervice operators

Mon 19th Jul 2021 - Rolling 12-month sales down 27%, but June provides cause for optimism as sales near 2019 levels
Rolling 12-month sales down 27%, but June provides cause for optimism as sales near 2019 levels: Sales at Britain’s managed pub, restaurant and bar groups in the 12 months to June 2021 were down by 27% on the previous 12 months, highlighting the effect of the pandemic on the sector. But the Coffer CGA Business Tracker, produced by CGA in partnership with The Coffer Group and RSM, also showed sales in June were almost level on both a total and like-for-like basis compared with 2019. Consumer demand was particularly strong in restaurants, where total sales were up by 3% in June. Pubs recorded a 2% drop, with mixed weather and restrictions dampening any benefit from the Euro 2020 football tournament. Sales were down by 11% in bars, where social distancing and early closing requirements continue to impact footfall. June's performance is a significant improvement on May, when total sales were down by 26% on May 2019. The Tracker indicated a particularly good month for regions beyond London – sales outside the M25 were up 4% in June, but down by 11% inside the M25. Many operators continue to benefit from strong delivery and takeaway sales while higher average spend by some consumers after the end of lockdown also contributed to the solid month. Karl Chessell, director – hospitality operators and food, EMEA at CGA, said: “June's figures are a testament to the enduring appeal of restaurants, pubs and bars, and the resilience of the businesses behind them. With an easing of covid restrictions imminent, it suggests a bright outlook for the eating and drinking out sector. However, rising costs and limited capacity mean many businesses are still struggling to make a profit, and major challenges including debt burdens and a recruitment crisis are casting a long shadow. Hospitality remains fragile, and it will need sustained support and concessions from government in the months ahead if it is to help drive the UK's economic recovery.” Mark Sheehan, managing director at Coffer Corporate Leisure, added: “Let's not pretend the road ahead is going to be smooth but what is clear is consumers want to eat and drink out and the trend is upwards. This continues to be a difficult time, but optimism remains in the hospitality sector.”


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