Pub and restaurant sales remain resilient

23rd June 2009, 12:47pm

The latest Coffer Peach Business Tracker has unveiled encouraging statistics for the British restaurant and pub industry, with like-for-like sales ahead 0.6% in May.

Sales appear to be holding up against last year despite the squeeze on consumer spending and increased competition from supermarkets.

Aggregated figures from 12 major groups show that like-for-like sales in May were ahead 0.6%, with month-on-month out-of-home sales ahead 3.7% compared to April.

The data comes from the Coffer Peach Business Tracker, run by Peach Factory in partnership with KPMG, UBS bank and Coffer Group.

The Business Tracker collects and collates sales data on a monthly basis to provide a unique picture of the health of the UK eating and drinking out-of-home market.

Peter Martin, founder of the Peach Factory consultancy, said: "Other research might suggest that there is contraction in overall eating and drinking out, but these figures demonstrate that managed, and largely branded, groups are in general bucking the trend and continuing to attract customers through their doors. If anyone is being squeezed, it seems to be the independent sector.

"There are undoubtedly variations from group to group, but the underlying trend in like-for-likes for most of 2009 has been steady against 2008, and that is some performance. The May +0.6% figure is in-line with that pattern.

"It is hard to say if this is down to increased promotional activity, more sophisticated marketing, better value, consistent quality and service, the reassuring strength of brands or even an increase in consumer confidence about going out. The bottom-line is that these established restaurant and pub groups are working harder and continuing to maintain custom."

Jonathan Leinster, head of European leisure and tobacco research, at UBS Investment Bank, added that value offerings, including the recent voucher-led promotional activity, looks set to continue right through the summer.

Trevor Watson, Director of Davis Coffer Lyons, part of The Coffer Group, a specialist in the valuation of restaurants and bars, said: "Whilst these positive like for like figures are very encouraging, no one should be under any illusions as to how difficult trading conditions are. The combined effect of discounting, the forthcoming impact of increases in the National Minimum Wage and the treatment of service charges, higher oil prices, and VAT increases will continue to put a lot of pressure on profit conversion for most operators over the next12 months."

"It remains to be seen how the industry performs over the coming summer months, but hopefully a spell of warm weather will go some way towards extending the sales levels we have seen in the tracker, across the whole of the sector."

Companies participating in Peach Business Tracker included:

Mitchells & Butlers
Whitbread Restaurants (including Beefeater, Brewers Fayre and Table Table)
Punch Pub Company (formerly Spirit Group)
Gondola (owner of Pizza Express, Zizzi and ASK)
Tragus Group (operator of Bella Italia, Strada and Café Rouge)
TGI Fridays
Barracuda Group (including Smith & Jones and Varsity)
Wagamama
Carluccio's
Paramount Restaurants (owner of Chez Gerard, Bertorellis and Caffe Uno)
Novus Leisure (operator of Tiger Tiger)
Gaucho Grill

Related Articles:

• 17 Apr 2012 - Pub and restaurant groups experience 1.9% hike in sales during March
• 13 Mar 2012 - Restaurants and pubs experience tough start to 2012
• 17 Jan 2012 - December sales boost pub and restaurant trade
• 14 Nov 2011 - Sales continue to rise at leading pub and restaurant chains
• 15 Sep 2011 - Eating out survives impact of August riots, finds research
• 19 Jul 2011 - Like-for-likes sales up 3.9% in eating and drinking out market
• 14 Mar 2011 - The eating and drinking out market gives boost to UK economy, according to new figures
• 14 Feb 2011 - UK pub and restaurant chains see like-for-like sales rise 10.7% in January
• 17 Jan 2011 - December trading down 4.2% at UK pub and restaurant chains
• 13 Dec 2010 - Pubs and restaurants experience slow growth in November
• 16 Nov 2010 - Chain restaurants continue to grow in sales
• 28 Oct 2010 - Tragus Group upbeat after resilient performance from its restaurant brands
• 18 Oct 2010 - Tragus Group teams up with Cineworld to launch film and restaurant promo
• 16 Aug 2010 - Pub and restaurant chains achieve sales growth in July
• 18 May 2010 - Restaurant and pub groups see sales rise in April
• 16 Feb 2010 - Sales in pubs and restaurants down 5% due to cold weather
• 14 Dec 2009 - Sales growth across pub and restaurant groups drop in November
• 24 Nov 2009 - Punch Pub Company puts vegetarian fish & chips on the menu
• 16 Nov 2009 - Leading restaurant groups see sales rise by 2.8% in October
• 27 Aug 2009 - Punch Pub Company launches learning programme

Click here to submit a comment!

Have your say!

To comment on this article, simply enter your name and email and send us your views. Please note that your comment will appear publicly below this article once it has been processed. For enquiries please email info@eatoutmagazine.co.uk.

Name

Leave blank

Email

Comment (max 800 characters)