Rise in regional pub and restaurant sales

Total sales pub and restaurant sales for those operating outside of London have risen by 6.2% in May measured against the same month last year by Coffer Peach Business Tracker.

The growth in sales reflects the continued expansion of new sites outside the capital city, particularly among branded casual-dining sites such as Wagamama, YO! Sushi and Casual Dining Group.

There was also a growth in like-for-like sales for pubs and restaurants of 2.1% in May. The results come off the back of a difficult start to the year for the sector, with sales up just 1.2% in April and a decline in March of 0.3%.

Peter Martin, vice president of CGA Peach, said: “This is a particularly encouraging performance, especially in a time of low inflation, and sees the sector return to the growth levels seen towards the end of last year. It also shows trading outside of London was equally as strong as inside the M25.”

Restaurants faired the better, with sales up 4.3% nationally while pubs reported a 1.1% growth. The biggest rise in total sales was enjoyed by branded casual dining groups with a growth of 12.5%, further illustrating the boom of new site openings.

Speaking of the more modest growth for pubs, Martin said: “The pub market away from London remains essentially flat, and what growth there is in the market is coming almost exclusively from food sales. Nationally food sales in pubs were up 4.5% in May, against a 0.9% decline in drink sales.”

Speaking about the findings, Emma O’Brien, senior consultant on the Pelican foodservice and hospitality PR communications team said: “It’s encouraging to see growth in the foodservice industry outside of London. While restaurants are outperforming pubs currently, it is interesting to note that pubs are experiencing notable upsurge in demand for food. Pubs that market themselves as all day venues and offer benefits like free Wi-Fi are starting to outperform the market.”

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