Britain’s top hospitality groups saw a 1.7% increase in sales in September, according to the latest CGA RSM Hospitality Business Tracker. This marks the eighth month of like-for-like sales growth in 2024. While this growth is on par with inflation rates, it highlights the ongoing challenges faced by the sector as we head into the final quarter of the year. Total sales, including new venues, rose by 3.7% in September.
Restaurants performed well in September, with a 3.2% increase in like-for-like sales, outpacing managed pubs which only saw a 1.5% growth. Bars, on the other hand, experienced a 3.8% drop in sales, while on-the-go establishments enjoyed a 4.3% growth.
In London, sales were slightly softer compared to the rest of the country, with a 1.3% increase within the M25 and a 1.9% growth outside of it. The challenging weather in September impacted pubs, as the rain kept customers away from outdoor areas, leading them to indoor dining options.
Karl Chessell, director of hospitality operators and food at CGA, noted the challenging conditions faced by the sector in September. Despite some positive economic indicators, the hospitality industry continues to face significant headwinds. The upcoming Budget presents an opportunity for targeted support to help the sector thrive.
Saxon Moseley, head of leisure and hospitality at RSM UK, expressed concerns about the sector’s steady but unremarkable growth. Consumer confidence has been affected by government discussions of tough decisions in the Autumn Budget. Additionally, recent legal and tax changes, such as new tipping legislation and the Employment Rights Bill, are increasing the cost of employing staff, putting pressure on businesses.
Looking ahead, the hospitality industry remains cautiously optimistic about the final quarter of 2024. While challenges persist, targeted support and a focus on customer experience could help businesses navigate the upcoming festive season successfully. It is essential for operators to stay informed about regulatory changes and adapt their strategies to meet evolving consumer demands in the months ahead.
