Restaurant chains need to work harder

25th February 2009, 11:00am

The British public is continuing to go out to eat and drink, but the UK's leading pub and restaurant chains are having to work even harder, research has revealed.

An increase in discounted offers and an extended New Year holiday were among the factors that helped the leading groups attract business. However, operators are still expecting a tough 2009.

The data, which comes from the newly launched Peach Business Tracker, run in conjunction with UBS and KPMG, also found that January sales were 12.5% below those of December.

Peter Martin, chief executive and founder of Peach Factory, which has developed the Business Tracker project, commented on the results: "This month's figures may be more robust than many had expected, but they suggest that the public continues to want to go out to eat and drink when the experience and offer is right, and that well-run pubs and restaurants provide a welcome respite from the gloom of the down-turn."

"There are clearly a whole number of factors that will have contributed to the monthly upswing against the same time last year. Increased marketing focus by the major players and the range of consumer offers now in the market have had a major impact on tempting the public out-of-home. Eating-out of home has actually become a relatively cheaper alternative to cooking at home. Retail food prices in contrast have risen."

Martin went on to raise his concerns: "However, there should be a note of caution. These are only one month's figures and the real health of the major eating and drinking-out sector will only become clear when coming months' data is published.

"This early January boost reflects the fact that many people took an extended holiday after New Year into the first week of January. The rest of the month appeared not so buoyant. The first month of the year is also one of the weakest trading periods and even a small increase in real sales can have a big impact on percentage growth."

Companies participating in the Peach Business Tracker include Mitchells & Butlers, JD Wetherspoon, Whitbread Restaurants (including Beefeater, Brewers Fayre and Table Table), Spirit Group, Gondola (owner of Pizza Express, Zizzi and ASK), Bay Restaurants (operator of Slug & Lettuce, La Tasca and Ha! Ha!), Town & City Pubs (owner of Yates's), Tragus Group (operator of Bella Italia, Strada and Café Rouge), Barracuda Group (including Smith & Jones and Varsity), Wagamama and Carluccio's.

Related Articles:

• 17 Nov 2010 - Yates's leaflet promoting theme night banned by ad watchdog
• 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
• 10 Nov 2009 - Yates's launches low price breakfast offer
• 03 Aug 2009 - M&B appoints chief executive officer
• 28 Jul 2009 - Bay Restaurant Group completes refinancing
• 09 Jun 2009 - La Tasca targets British holidaymakers with summer menu
• 26 May 2009 - PizzaExpress joins the Hi-Life
• 04 Mar 2009 - Restaurant industry will return to growth in 2010

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.