Bars and restaurants rise
Eating out sector rises as menus adapt to health trend
Restaurants saw an uplift in business in January
Britain’s managed pub, bar and restaurant sector has kicked-off the New Year on the front foot as many outlets revised their menus to take account of consumers demanding more meat-free and low alcohol options.
Collective like-for-like sales were up 1.9% in January compared to the same month last year, according to the Coffer Peach Business Tracker.
January’s positive results come on the back of strong trading over the festive period, which saw collective like-for-likes up 2.5% against the previous year.
“Reasonably good weather, in particular the lack of snow, will have helped sales, but nonetheless it is encouraging to see that the public is continuing to go out to eat and drink,” said Karl Chessell, director of CGA, the business insight consultancy that produces the Tracker in partnership with TheCoffer Group and RSM.
The eating and drinking out market is showing resilience and people’s appetite for going out remains intact– Trevor Watson, Davis Coffer Lyons
Restaurant groups saw the biggest increase in January, with like-for-likes up 2.5%, driven almost entirely by strong sales outside of London. Managed pubs saw like-for-likes grow 1.7% over the month, while bar operators were also up, although by only 0.9%.
Trevor Watson, executive director at Davis Coffer Lyons, said: “To put these figures in context, last January the market saw a 1.8% drop in like-for-likes against 2018, so essentially we are back to where we were two years ago.
“But it does show an underlying stability in the market, despite the political climate and what has been going on in the wider economy. The eating and drinking out market is showing resilience and people’s appetite for going out remains intact.”
The Ivy Glasgow was one of the new restaurants that opened last year
Paul Newman, head of leisure and hospitality at RSM, said: “A year-over-year sales boost is a welcome reward for the many pubs, bars and restaurants who refined their New Year offering to capitalise on the trends for Veganuary and alcohol alternative drinks.
“Any sales increase will be welcomed by a sector that still faces tremendous cost pressures, particularly around people, business rates and food prices. Operators will eagerly await any news on the easing of such costs from Sajid Javid’s upcoming budget announcement
The Coffer Peach Tracker industry sales monitor for the UK pub, bar and restaurant sector collects and analyses performance data from 58 operating groups, with together almost 10,000 sites and a combined turnover of over £11bn and is the established industry benchmark.
Glasgow indies on the rise
Independent restaurateurs in Glasgow are performing better than chains as they have opted for quirky locations to help keep costs lower.
John Menzies, director in the retail team at Savills in Glasgow, said: “Independents have been more cautious around how quickly they grow, compared with some of the larger chains.
“For many independents, they have been priced out of premium rental locations and instead opted for quirky locations which are lower in rent, but still close enough to the centre to attract customers.
“As a result, many of these businesses have demonstrated positive turnover growth which has in turn encouraged more independent businesses to open.”