Managed sector 'shows resilience' with 5% growth in August

By James McAllister

- Last updated on GMT

Managed restaurant, bar and pub groups 'show resilience' with 5% growth in August

Related tags: Cga, Restaurant, Managed pubs

Mounting consumer confidence and staycations helped Britain’s leading managed restaurant, bar and pub groups to lift sales above pre-Covid-19 levels in August, the latest Coffer CGA Business Tracker reveals.

Sales last month were 5% ahead of August 2019, representing the first month of year-on-year growth since hospitality began to reopen in mid-April.

Total sales were also 35% up on August 2020, when the majority of venues were open after Britain’s first lockdown and the Government’s ‘Eat Out to Help Out’ initiative was running.

However, on a longer 12-month measure, Covid-19 continues to take a toll on groups’ trading with the Tracker showing rolling 12-month sales to the end of August 2021 being down by 15% on the 12 months to August 2020 — a period which included the UK’s first national lockdown.

“August was another impressive month of recovery for managed groups from the havoc wreaked by Covid-19," says Karl Chessell, director – hospitality operators and food, EMEA at CGA.

"It is a particularly impressive performance given the severe operational pressures that many businesses are working under, including staff shortages, supply problems and rising costs. Sales growth is testament to the resilience and adaptability of the hospitality industry and consumers’ ongoing enthusiasm for restaurants, pubs and bars.

"While trading conditions remain some way off pre-Covid-19 norms, August will hopefully act as a springboard for a strong final four months of 2021 for the sector.”

For the fourth month in a row, managed restaurant groups outperformed the market, with total sales up by 7% on August 2019. Pubs recorded 3% growth, with pub restaurants (up 6%) faring better than drink-led sites (up 1%).

Bars enjoyed an impressive surge in sales following the easing of restrictions on the late-night sector, finishing August 21% up on 2019.

Businesses benefited from a first full month of restriction-free trading in August, as well as the easing of safety concerns among diners and drinkers.

Widespread ‘staycations’ during the school holidays contributed to a strong August for regions beyond London, with sales outside the M25 up by 9%. London continued to be impacted by the absence of many office workers and tourists, and sales within the M25 were down by 7% on August 2019.

“August figures show welcome progress in public support," remarks David Coffer, chairman at Coffer Corporate Leisure.

"However, we should be wary of the major challenges which lay ahead; shortage of food and drink and labour, the end of furlough and the statutory demands for repayment of loans, rates, VAT and now higher National Insurance contributions​.

"There is also the threat of further lockdown and Covid controls as well the spectre of the end of the rental moratorium.

"The next few months will prove the depth of these challenges, but the undoubted ability of the sector to cope as ever.”

A total of 57 companies provided data to the latest edition of the Coffer CGA Business Tracker.

Related topics: Trends & Reports

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