Restaurant and pub sales increase while retail sales fall
The latest report form hospitality analyst Coffer Group, in partnership with KPMG and UBS, found that sales across 19 major pub and restaurant operators increased by almost 1 per cent in March 2011, compared to the same month last year.
When sales from new site openings were taken into account, total sales in the eating-out market were 3.4 per cent higher in March this year.
These sales increases came against a backdrop of falling supermarket sales, with the latest figures from the British Retail Consortium showing a 3.5 per cent like-for-like decrease in retail sales last month, compared to March 2010.
Optimism
Mark Sheehan, managing director at Coffer Corporate Leisure, part of the Coffer Group, said: “Although trading remains tough, there is a strong sense of optimism in the market, backed up by canny investors such as Duke Street Capital and Lyceum Capital who have recently invested in the sector with their acquisitions of Wagamama and Eat respectively.
“Restaurant and pubs sales are holding up relatively well across the sector, although there is an ever-increasing regional bias towards the south east. London is now almost operating its own economy, benefiting from the weak pound and its position as a one of the world’ leading international centres.”
The Coffer Peach Business Tracker – which tracks sales performance in groups such as Mitchells & Butlers, Whitbread restaurants, Pizza Hut, Punch Pub Co, Gondola, Tragus , Wagamama, and Orchid Pub Co – found that despite the increase on last year, the March sales figures were lower than the growth recorded in February.
Easter impact
“The slow-down may have something to do with the corresponding weeks last year including the first part of the Easter break,” he added. “So, these results may be slightly better than they appear,” said Peach Factory director Peter Martin.
“However, trading is still tough and competition for the public’s time and money is increasing. There is a fight for market share across eating-out, and those continuing to invest in improving their offer and adding sites are the ones winning out.”
Will Hawkley, director in leisure atKPMG, added: “It will be interesting to see what impact the recent many tax changes have on consumer spending in April, set against the back drop of the upcoming spate of bank holidays and the recent good weather especially as households seem to be focussing on paying down mortgage balances. Can the sector continue to grow as real income for many households declines?”
