1.7% sales growth marks a steady but unremarkable month for Britain's hospitality sector

Monday, October 28, 2024

The CGA RSM Hospitality Business Tracker has reported that managed hospitality groups experienced a noticeable rise of 1.7% in sales over the past year, mirroring the current inflation rate.

Solid Performance from Restaurants and Pubs

The overall sales performance of managed hospitality groups demonstrated a substantial improvement in September, with a total year-on-year growth rate of 3.7% achieved through a combination of strong increases in key sectors.

The Tracker also showed that bars continued to struggle, experiencing a drop of 3.8%, while the on-the-go segment achieved a significant 4.3% growth.

Regional Variations in Sales Growth

London's trading performance fell short of other areas in the country, with sales within the M25 area growing by only 1.3% year-on-year in September, contrasting with a more significant 1.9% increase for locations outside this zone.

"September's results continue the recent trend of steady but unremarkable growth for the sector, with consumer confidence and spending spooked by the government's talk of "tough."

Saxon Moseley

Karl Chessell notes that September's poor weather conditions hindered real growth for hospitality companies.

The industry is currently bracing itself for a potentially difficult final quarter of 2024, as it navigates the complex interplay between positive economic indicators and significant obstacles that remain.

With the forthcoming Autumn Budget on the horizon, there is an opportunity for targeted interventions that could potentially help alleviate some of the sector's pressing challenges and provide much-needed support.