GB bar sales drop as pubs grow

Bar chains in Great Britain saw sales decline in May for the fifth month in a row as all other hospitality segments grew.

Based on data from 108 chains, the CGA RSM Hospitality Business Tracker revealed that like-for-like sales for Britain’s managed hospitality groups returned to growth in May with a 3.6% rise.

In April, total sales for hospitality groups dipped by 1.7%, representing the first year-on-year drop in monthly sales since September 2022.

Bar chains reported a 2.7% decrease in May, marking an improvement on the previous month when sales plummeted by double digits (15.1%).

Pubs performed better in May with a 4.4% increase while restaurants saw growth of 3.8%.

The on-the-go segment dipped by 1.6%.

For the fifth time in six months, hospitality groups performed better in London than the rest of Britain. Sales for venues within the M25 rose by 4.1%, while outside of the M25, sales were up by 3.5%.

Karl Chessell, director – hospitality operators and food, EMEA at CGA by NIQ, said: “May brought a relief to return to above-inflation growth in hospitality after a blip of negative numbers in April.

“Wet and cool weather continues to work against pub operators, but they and restaurants may be starting to feel the benefit of a relaxation of spending among some consumers, especially over occasions like Bank Holiday weekends.

“Bars and on-the-go sites are meanwhile still some way short of where they could be. The general election [4 July] and greater economic certainty may help to unlock further spending, but operators will be hoping above all for much brighter summer weather to tempt people out of home.”

Saxon Moseley head of leisure and hospitality at RSM UK, noted “mounting pressure” on the next government to offer “much needed support” to the industry through a rates reform, VAT cut and “better access to skilled workers”.

Data from UK Hospitality recently estimated that the Euro 2024 football tournament could provide a £800 million (US$1 billion) boost to pubs and bars in the UK if England is crowned champion.