GB bar sales continue to drop

Bar chains in Britain have failed to report any sales growth over the past eight months, according to CGA data.

Based on data from 112 chains, the CGA RSM Hospitality Business Tracker revealed that like-for-like sales for Britain’s managed hospitality groups grew by 1.3% in August 2024.

Total sales growth in August, including new venues that opened during the past year, stood at 3.7%.

Bar chains suffered their eighth consecutive month in decline, falling by 9% in August. The decrease was greater than the previous month when sales dropped by 6.4%.

All other segments grew including pubs (up by 3.1% in total and by 9% like-for-like) and restaurants, which were up by 5.2% in total but only by 0.8% on a like-for-like basis. On-the-go sales soared by 35.3% but like-for-like sales were up by 5%.

CGA noted that hospitality groups have achieved like-for-like increases in every month of this year except April.

However, August marked only a second successive month of below-inflation growth, and the Tracker has topped 4% only once since the start of 2024.

Total sales for hospitality groups rose by 1.2% inside the M25 in August, while venues outside of the M25 only performed slightly better with 1.4% growth. It is only the second time this year that the capital has recorded weaker figures than the rest of the country.

Karl Chessell, director – hospitality operators and food, EMEA at CGA by NIQ, said: “August’s figures complete a modest summer for hospitality groups, and with the weather and consumers’ confidence both underwhelming, real-terms growth has been elusive.

“While some bars and restaurants have found it hard to sustain footfall, the picture has been brighter at pubs, especially given the impact of the cool temperatures on beer gardens and terraces. Consumers remain eager to eat and drink out when they can, but operators will be hoping they will feel confident enough to spend more freely as we move towards the crucial final quarter of 2024.”

Saxon Moseley, head of leisure and hospitality at RSM UK, added that the hospitality sector would be hoping for further support from the government during the autumn Budget, including business rates reform, a cut in VAT and a fall in employer national insurance contributions.

He warned: “However, a ‘painful’ Budget could dent consumer confidence and with it, discretionary spending and business investment which would hold back any recovery and apply more pressure ahead of the all-important festive trading season.”