Restaurant and pub groups hit by later school half-term
In many parts of the UK the week-long half-term fell within the November sales period. Total sales were up, however, by 1.6 per cent, reflecting continued new outlet openings by the leading operators – but this figure is still behind on the current year-on-year growth trend.
Underlying figures for the 12 months to the end of September show that combined total sales for the 25 companies providing data for the Tracker were up 5.7 per cent on the previous 12 months, with combined year-on-year like-for-like sales running ahead 1.5 per cent.
“School half terms, usually a good week for eating-out sales, were generally a week later this year,” said Peter Martin of Peach Factory, the business intelligence specialist that produces the sector Tracker.
Market-share
“The total sales figure gives a more accurate picture of the health of the eating and drinking-out market. There is modest like-for-like growth, but the chains are continuing to expand total sales by opening new sites and that way are gaining market-share.”
Bad weather at the end of September held back sales growth in the previous month, with collective like-for-likes up just 0.7 per cent. That followed a 2.1 per cent like-for-like increase for the sector in August.
“It reminds us that just like the weather, holiday periods remain a major influence on trading patterns for the eating and drinking out sector,” Martin added.
London pubs
Regionally, the Coffer Peach figures showed the London market trading more strongly than outside the M25 during October, with pubs doing particularly well.
Ali Aneizi, M&A and private equity partner at Baker Tilly, said: “Last year’s warm end to the summer is impacting current like-for-like results. Outside of London has borne the brunt of this decline, while London has remained largely flat.
“October last year was the warmest since 2006 and the poor weather this year seems to have had an adverse effect. Overall results show a more positive picture, with an increase in year on year total sales and a net increase in the number of new site openings.
“Confidence in the industry remains positive, with interest from investors buoyant and rising. We are seeing increasing appetite from private equity and are working on several transactions in the sector. In addition, many will take comfort from Rutland’s investment in the UK Pizza Hut estateas a positive signal for the industry.”
