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Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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Food & drink

Hospitality sector sees sales rise above pre-pandemic levels but pubs are still struggling

"It seems the market is striving to surge ahead but is held back by external pressures," said David Coffer, chairman at The Coffer Group

Sales in Britain’s managed restaurant, pub and bars sectors rose above pre-pandemic levels in February, according to market research group CGA.

The latest Coffer CGA Business Tracker revealed like-for-like sales rose 3% year-on-year compared to (pre-pandemic) February 2019, after falling 1.0% on a two-year comparison basis in January.

Restaurants increased like-for-like sales by 9% in February, just outpacing the 7% growth for bars, which benefited from the scrapping of requirements for vaccination passes in late-night venues, CGA said. Pubs had a tougher month, ending down 1% on the pre-COVID-19 levels of February 2019.

London continues to struggle to recapture former glories. Managed groups’ like-for-like sales inside the M25 in February were 4% below February 2019, compared to growth of 6% beyond the M25.

“These figures show managed groups are building momentum after two years of turmoil. Delivery and late-night bars are particularly buoyant at the moment, and underlying demand for hospitality experiences remains strong; however, margins are being tightly squeezed by fast-rising costs, and the cost-of-living crisis is likely to dent consumer spending as the year goes on. Some businesses remain extremely vulnerable, and there’s a powerful case for government support on tax and other issues to help them fuel the UK’s post-COVID-19 economic recovery,” said CGA’s Karl Chessel.

GA collected sales figures directly from 62 leading companies for the February edition of the Coffer CGA Business Tracker.

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