Pubs drive hospitality sales higher in August, as eating-out revenues slide

(Sharecast News) - Pubgoers basking in the August heatwaves helped underlying sales across Britain's leading pub, restaurant and bar groups rise for the first time in four months, according to the CGA RSM Hospitality Business Tracker out on Monday.

The survey, which tracks sales from 121 leading managed groups, showed like-for-like sales growth of 0.5% in August across the sector - the first positive month of trading since April.

Pub sales were up 2.8% on last year on a LFL basis, with beer and cider sales particularly strong, as the good weather prompted more visits to pub gardens.

That made up for broad-based declines across the restaurant, bar and the on-the-go segments, with LFL sales down 1.6%, 5.0% and 4.5% over last year, respectively.

For the overall hospitality sector, total sales - which include turnover at venues opened over the past 12 months - were up 3.9% on last year, which CGA and RSM pointed out was only "fractionally ahead" of the current inflation rate.

Karl Chessell, director of hospitality operators and food, EMEA at CGA by NIQ, said the data caps off a "challenging summer" for managed hospitality groups.

"Ongoing price rises are making consumers cautious, and while the sunshine loosened some people's spending in pubs, many restaurants have found it hard to generate the sustained real-terms growth that is needed to mitigate sharp increases in costs," Chessell said.

Meanwhile, Saxon Moseley, head of leisure and hospitality at RSM UK, called on the government to introduce stimulus measures to ease the strain.

"As we enter the final months of the year, all will be hoping that the budget will provide a boost to consumer confidence and offer some relief to a sector that has borne the brunt of this year's tax rises," Moseley said.