Britain’s pub and restaurant groups saw collective like-for-like sales edge up 1% in October on the same month last year, fuelled mainly by a strong London market. Collective like-for-likes inside the M25 were ahead 2.3%, according to latest figures from the Coffer Peach Business Tracker.
Underlying growth coming from London
“It was a better overall performance than September, when like-for-likes grew just 0.4%, but practically all the underlying growth in the eating and drinking out market is coming from London. Outside the M25 saw only a modest 0.4% like-for-like rise in October,” said Peter Martin of CGA Peach, the business insight consultancy that produces the Tracker, the sector’s most comprehensive performance barometer, in partnership with Coffer Group, Baker Tilly and UBS.
Total sales up 3.9%
Total sales across the 27 companies contributing to the Tracker grew 3.9% during October, reflecting the continued roll-out of new sites.
“That top line growth is particularly marked outside of London. While like-for-like growth is harder to find away from the capital, new site openings, particularly from casual dining chains, are maintaining total sales momentum,” added Martin.
In general, casual dining had a tougher October than pubs and bars. Although restaurant chains in London were in positive growth, nationally LFL sales were down 0.7% for the month.
Buoyancy of the London economy
“The pub and bar market has been performing particularly strongly in London. Pubs in the capital saw LFL growth of 3.7% in October. While pub restaurants outside also saw growth, drink-led pub sales outside London were flat,” said Martin.
The buoyancy of the London economy is certainly helping the sector, and pubs in particular,” he said. “There is a different pub and bar culture, especially after work, in the capital, but the question for pub groups is whether there is something else about London pubs that can be exported to re-energise their estates in the rest of the country?
“For casual dining chains the question is more about whether their focus on new site openings outside London is affecting their like-for-like performances in established sites?” said Martin.
The longer-term trend for the managed pub and restaurant sector is positive, with year-on-year like-for-likes for the 12 months up to the end of October running at 1.5% up on the previous 12 months, with total sales growth running at 4.5% up.
Collective LFLs have risen in each of the last six months
David Coffer, chairman of The Coffer Group, said: “The market continues to show positive signs of growth and while this month the numbers are distorted slightly by strong performance in London, we only have to go back to the August when LFLs outside the M25 outstripped those within. It is challenging to achieve sustained growth regardless of location, however, what is particularly positive is that nationally we have seen collective LFLs rise in each of the last six months – albeit at times by very small amounts. The question going forward is whether this trend continues.”
About Coffer Peach Business Tracker
The Coffer Peach Tracker industry sales monitor for the UK pub and restaurant sector collects and analyses monthly performance data from 27 operating groups, and is recognised as the established industry benchmark.
Peach Factory collects sales figures directly 27 leading companies. Participants include Mitchells & Butlers (owner of Harvester, Toby, Browns, All Bar One etc), Pizza Hut, Whitbread (Beefeater, Brewers Fayre, Table Table), Gondola (PizzaExpress, Zizzi, ASK, Byron), Spirit Group (Chef & Brewer, Fayre & Square), TGI Fridays, Tragus (Cafe Rouge, Bella Italia, Strada), Stonegate (Slug & Lettuce, Yates’), Marston’s, Orchid Pub Co, Wagamama, YO! Sushi, Novus (Tiger Tiger), Fuller’s, Carluccio’s, Young’s, Living Ventures, Amber Taverns, Hall & Woodhouse, Gaucho, Las Iguanas, Intertain, Tattershall Castle Group, La Tasca, Giraffe, Loungers and Le Bistrot Pierre.