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GB bar sales down seven months in a row
Bar chains in Britain reported their seventh consecutive month of declining sales in July as pubs were given a Euros boost.
Based on data from 114 chains, the CGA RSM Hospitality Business Tracker revealed that like-for-like sales for Britain’s managed hospitality groups posted a 1.5% increase in July 2024.
Bar chains suffered a 6.4% sales drop last month, while all other segments grew.
Managed pub groups saw a 5.2% increase and restaurants rose by 2.1% (but were down by 2.1% on a like-for-like basis). On-the-go sales soared by 31.5% in July, however like-for-like sales were up by only 1.5%.
Pubs enjoyed higher footfall in July with the quarter, semi-final and final games of the Euro 2024 football championship. CGA highlighted that pubs within the M25 performed particularly well with 9.9% like-for-like growth.
Saxon Moseley, head of leisure and hospitality at RSM UK, noted that some restaurant and bar operators “closed early due to cancelled bookings and reduced demand” in July.
Bars were also the only segment to decline in June (down 4.9%) and May (down 2.7%). Bars groups have failed to report any monthly sales increases this year, the Hospitality Business Tracker showed.
Karl Chessell, director – hospitality operators and food, EMEA at CGA by NIQ, said: “With most positive growth being seen in the pub sector in July, this had a knock-on effect on other hospitality venues as they saw like-for-like drops in performance. For hospitality as a whole, this isn’t necessarily a negative thing.
“The uplifts seen based on key events within the month show that while the cost-of-living pressures are ongoing, consumers are still making those all-important visits to hospitality venues.
“As we move into the back end of summer, with warmer weather, and an upcoming Bank Holiday at the end of the month, we hope to see growth spread more equally across key segments.”
Moseley also voiced optimism for the hospitality sector during the rest of 2024: “Well-run businesses with differentiated offerings and flawless experiences will continue to do well as real wages rise and confidence returns in the second half of the year.”
Data from UKHospitality estimated that Euro 2024 could provide a £800 million (US$1 billion) boost to pubs and bars in the UK.
It’s been a tough year for bar chains with Revolution recently moving forward with a restructuring plan.
Meanwhile, Piano Works and Cocktail Club owner Nightcap revealed it was planning to delist from the London Stock Exchange after difficulties raising funds through shares.
Stonegate, which owns more than 4,000 pubs and bars across the UK, has been seeking ways to refinance its debts since February 2024.
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