GB bar sales struggle in 2024
Bar chains in Britain look set to end the year without any sales increases in 2024, while pubs and restaurants continue to grow.
The monthly CGA RSM Hospitality Business Tracker collected sales figures from 115 managed pub, bar and restaurant groups across Britain in November.
Collectively, the groups recorded a sales increase of 4.7% in November 2024, compared with the same month last year. Sales for all segments were up by 2.7% on a like-for-like basis, which records the revenue of the same number of bars in 2023 with this year.
The 2.7% rise marked the first like-for-like growth for hospitality chains since June this year.
Managed bar companies have failed to report any sales increases in 2024 to date, data from the Tracker showed. In November, sales for bar groups fell by 4.6% (down by 5.3% on a like-for-like basis), following a drop of 4.7% in the previous month.
April was a particularly low point for bars, which plunged by 15.1%. The next biggest drop for the segment came in January (down by 13.6%), while August sales slipped by 9%.
Out of all hospitality segments, managed restaurants grew the most in November with sales up by 6.7% and like-for-like sales rising by 3.6%.
Total sales for pub chains increased by 3.5% (up by 3.1% in like-for-like terms), driven by Halloween celebrations at the start of November.
Trading in London was slightly ahead of the rest of the country for the first time since July, with hospitality venues within the M25 up by 3% in November. Pubs, bars and restaurants outside of the M25 grew by 2.5%.
‘Severe pressure’
During the autumn budget in October, the UK chancellor confirmed the government would increase the National Insurance contributions from employers by 1.2%, taking it to to 15% from April 2025. The move could cost UK hospitality businesses between £30,000 (US$38,760) and £150,000 (US$193,820) each year.
Saxon Moseley, head of leisure and hospitality at RSM UK, warned tax rises and changes to legislation were set to “significantly increase costs for the sector”.
Karl Chessell, director – hospitality operators and food, Europe, Middle East and Africa, at CGA by NIQ, said: “After struggling for real-terms growth for much of the summer and autumn, November’s trading figures represent a solid if unspectacular recovery.
“They are particularly welcome in light of the new burden placed on hospitality by the government’s budget, but costs and margins will continue to be under severe pressure for some time to come.
“With the vital Christmas and new year trading period looming, groups will now be keeping everything crossed for favourable weather and strong consumer confidence so they can end 2024 on a high.”
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