Restaurants experienced a strong July, despite the wet weather, with like-for-like sales across venues rising by more than 12% compared to the same period in 2022, research from the CGA found.
For all hospitality venues, revenues jumped by 7.8% annually, with growth inside of London being slightly better at 8.1% compared to the rest of the UK, which experienced a 7.7% jump.
Karl Chessell, a director at CGA, said it was “no surprise” restaurants saw an uptick, claiming that because of the wet weather, July’s trends were the opposite of warmer months like May when punters flocked to pubs rather than indoor venues, like restaurants.
Leading in terms of growth since May last year – when year-on-year tracking moved past Covid – pubs suffered a tougher month, with sales growth below the market average, rising by only 7%.
“Whilst it's disappointing to see the weather have a negative effect on drink-led outlets, the positive period for restaurants is encouraging, especially considering the negative results from last month’s Tracker and the continuing rising cost challenges the sector is facing,” Chessell added.
Suffering multiple headwinds since Covid, the hospitality industry, in particular pubs, received a well needed boost this month when the government revealed it would be extending takeaway alcohol rules until 2025.
Soaring inflation, worker shortages, alcohol duty reforms and the cost-of-living crisis have all wreaked havoc on the industry, leading to huge bankruptcies, with independent venues bearing the brunt of the losses.