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Wed 20th Jul 2022 - Hospitality groups' like-for-like sales up 5% in June but inflation bites, strongest month of growth in 2022
Hospitality groups' like-for-like sales up 5% in June but inflation bites, strongest month of growth in 2022: Like-for-like sales at Britain’s top managed restaurant, pub and bar groups were 5% ahead of pre-covid levels in June, the latest Coffer CGA Business Tracker has revealed. The result from the tracker – produced by CGA by NielsenIQ in partnership with The Coffer Group and RSM UK – represents the strongest month of like-for-like growth since the start of 2022. However, June’s figures are skewed by the Queen’s Platinum Jubilee, which provided two bank holidays against none in June 2019. The growth is also below inflation as measured by the Consumer Price Index, which recently topped 9%. Restaurants were the strongest performing of the tracker’s three hospitality segments in June, with like-for-like growth of 8%. Pubs’ sales were up by 3% on three years ago, and bars’ sales rose by 5%. Trading in London remains challenging, the tracker showed. After a flat performance in May, like-for-like sales within the M25 were down by 1% in June, compared with 7% growth beyond the M25. It follows rail strikes over several days in June, which significantly reduced footfall from workers and visitors in London. The tracker also suggests some consumers who have opted for deliveries since the start of the pandemic are now returning to eating out. Managed groups’ dine-in only sales were up by 2% on a like-for-like basis in June – the first time this year that they have been in line with total growth. Karl Chessell, director – hospitality operators and food, EMEA at CGA, said: “Like-for-like sales growth of 5% would represent a strong performance for managed groups in most months. However, high inflation means sales are down in real terms, and mounting costs continue to pile pressure on profit margins. The first half of 2022 has brought some welcome stability to the hospitality sector, and consumers have returned to most of their pre-pandemic habits—but while the long-term outlook remains good, there may be some tough months ahead for many businesses.” Mark Sheehan, managing director at Coffer Corporate Leisure, added: “We are seeing a very slow return to normality. Some operators and locations are trading well. Inflation and recruitment remains a priority.”


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