Hot weather helps pubs and restaurants post modest monthly sales growth
British pubs and restaurant groups enjoyed increased sales in July, as eateries showed signs of recovering from poor trading last summer.
Restaurant groups posted a 3.8 per cent increase in like-for-like sales compared to last July, when hot weather and the football World Cup took their toll on business.
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By contrast, managed pubs, which cashed in on last year’s sun-drenched sporting frenzy, saw sales decline 0.2 per cent over the month.
Overall, like-for-like sales grew a modest 1.2 per cent in July, according to the latest figures from the Coffer Peach Business Tracker.
“Considering the barnstorming July that pubs had last year, holding relatively steady this July will be seen as a good performance, and restaurant groups will be more than relieved with their sales recovery,” said Karl Chessell, director of CGA, which co-produces the report.
Sales growth was stronger outside of the M25 than in London, rising 1.3 per cent compared to one per cent, according to the report. Restaurants fared better outside the capital, while pubs proved more resilient in London.
However, the tracker showed restaurants still face challenging conditions, with groups registering more closures than openings over the month.
Casual dining chains such as Carluccio’s, Prezzo and Gourmet Burger Kitchen have all shut branches in a bid to stay afloat amid rising costs and a decline in footfall on the high street.
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Saxon Moseley, senior manager at accountancy group RSM, said: “Sustained like-for-like growth will come as welcome news to Britain’s restaurant groups and provides further evidence that supply is reaching parity with demand.
“With pubs and bars buoyed by a summer heatwave in July, operators will be hoping for more good weather to stave off consumer uncertainty around Brexit.”
Main image credit: Getty