According to the most recent CGA RSM Hospitality Business Tracker report, sales for Britain's leading hospitality groups increased by 5.2% in March 2024, signifying a noteworthy upturn following a slow beginning to the year.
This growth can be attributed to several factors, including the impact of early Easter celebrations and holidays falling into March this year, as opposed to April in 2023.
The managed pub sector was particularly successful during this period, with like-for-like sales increasing by a robust 7.2%.
However, growth for restaurants remained softer at 3.4%, and the on-the-go segment faced a decline of 5.2%.
Despite a minimal dip (0.5%) in bar sales for March, this figure signifies progress compared to the substantial drops of 13.6% and 7.4% encountered earlier in the year.
Sales growth for the last month was higher in regions outside London (an increase of 5.7%) than in London itself (a rise of 4.0%) for restaurant, pub, and bar sectors.
"These figures are encouraging for hospitality after a slow start to 2024 and show that people remain eager to celebrate holidays and special occasions in restaurants, pubs and bars."
Karl Chessell
Karl Chessell, a director at CGA by NIQ, expresses optimism regarding consumer willingness to celebrate holidays and special occasions in restaurants, pubs, and bars despite economic challenges.
The recent decrease in inflation rates and falling energy prices have instilled a renewed sense of optimism among consumers, potentially resulting in an increase in their willingness to dine out, drink at pubs, or visit bars throughout 2024. This positive trend could significantly contribute to the recovery and growth of the hospitality sector.
The encouraging 5.2% sales growth recorded by Britain's leading hospitality companies in March 2024 is a noteworthy development, representing a substantial advancement following a sluggish start to the year.
Although the March sales growth is a promising sign for the hospitality industry, it may take some time before this translates into consistent, real-term growth.