The Tracker, produced by CGA in partnership with The Coffer Group and RSM, shows total sales were up by 3% on the pre-COVID levels of October 2019. Sales were 64% higher than in October 2020, when trading was subject to severe COVID restrictions.
October was a slightly better month for pub groups than restaurants, with total sales growth of 3% and 2% respectively. Bars performed best of all with an increase of 13% as the recovery of the late-night market continued.
The Tracker also highlights a contrast in trading in London, where a shortage of office workers and tourists meant sales were down by 4% on October 2019; and beyond the M25, where they rose by 6%.
Across all sectors and regions, October delivered a third consecutive month of 2021-on-2019 increases, though the rate of growth dipped from 8% in September. It indicates the resilience of managed groups, who remain under severe pressure from challenges including rising food, drink and energy costs and distribution and recruitment problems. Businesses continue to feel the effects of COVID and lockdowns, with rolling 12-month sales to the end of October 2021 down by 4.5% on the previous 12 months.
Karl Chessell, director – hospitality operators and food, EMEA at CGA, said: “Managed groups battled hard to sustain sales in October, but patchy consumer confidence and a host of external challenges are making real-terms growth elusive. COVID has taken a heavy toll on hospitality, and while some businesses have flourished since the end of lockdown, others remain extremely fragile. Hopes are pinned on a strong Christmas trading period, but the sector needs and deserves sustained support in many areas well into 2022 to help fuel its recovery.”
Mark Sheehan, managing director at Coffer Corporate Leisure, said: “This recovery is now proving itself to be longer term. Consumers value their hospitality experiences and operators are generally seeing steadily improving numbers. The bar and late-night market particularly is very strong and we see this improvement as sustainable not just in the short term but to 2022 and beyond. Very good operators are performing well in most locations.”
Paul Newman, head of leisure and hospitality at RSM, said: “Post lock-down euphoria appears to be waning with sales growth compared to 2019 falling to 3% in October vs 8% in September as consumers begin to feel the impact of rising household bills on discretionary spending. Sales comparisons to 2019 are also being impacted by acute labour shortages, forcing many hospitality businesses to cut trading hours with operators, conscious of the need to give their teams a chance to “recharge their batteries” before the all-important festive trading season kicks in. It could spell the start of a long, hard winter for the sector if this downward trajectory in sales growth continues for the rest of the year.”
A total of 59 companies provided data to the October edition of the Coffer CGA Business Tracker.
Participating companies receive a fuller detailed breakdown of monthly trading. To join the cohort, contact Andrew Dean at andrew.dean@cgastrategy.com.
About the Coffer CGA Business Tracker
CGA collected sales figures directly from 59 out of the 61 leading companies participating in the Coffer CGA Business Tracker. Participants include: All Star Lanes, Amber Taverns, Anglian Country Inns, Azzurri Group (Ask Italian, Zizzi), Banana Tree Restaurants, Beds and Bars, Big Table Group (Bella Italia, Las Iguanas), Boparan Restaurant Group (Carluccio’s, Gourmet Burger Kitchen), Bill’s Restaurants, BrewDog, Buzzworks Holdings Group, Byron, Cityglen Pub Co, Coaching Inn Group, Cote Restaurants, Dominion Hospitality, Fuller Smith & Turner, Gaucho Grill, Giggling Squid, Greene King (Chef & Brewer, Hungry Horse, Flaming Grill), Gusto Restaurants, Hall & Woodhouse, Hawthorn Leisure, Honest Burgers, Laine Pub Co, Le Bistrot Pierre, Liberation, Loungers, Marston’s, McMullen & Sons Ltd, Mitchells & Butlers (Harvester, Toby, Miller & Carter, All Bar One), Mowgli, Nando’s Restaurants, Oakman Inns, Peach Pubs, Pizza Express, Pizza Hut UK, Prezzo, Punch Pub Co, Rekom UK, Restaurant Group (Frankie & Bennys, Chiquitos, Brunning & Price), Revolution Bars, Riley’s, Rosa’s Thai, Snug Bar, Southern Wind Group (Fazenda), St Austell, Star Pubs & Bars, State of Play Hospitality, Stonegate Pub Co (Slug & Lettuce, Yates’, Walkabout, Bermondsey Pub Company), Tattu Manchester, TGI Fridays UK, The Alchemist, True North Brew Co, Upham Pub Co, Various Eateries (Strada, Coppa Club), Wagamama, Whitbread (Beefeater, Brewers Fayre, Table Table), YO! Sushi and Youngs.
