Britain’s leading hospitality groups recorded year-on-year sales growth of 2.7% in the run-up to Christmas, according to the latest Hospitality Business Tracker.
With year-on-year sales failing to meet inflation in six out of the past 11 months, operators have already found themselves balancing fine margins throughout 2024.
But with staffing costs among managed groups expected to rise even further in April, this Christmas carried the burden to make up for strained trading in the previous year and bolster business for the year ahead.
With like-for-like sales growth of 2.7% in the week commencing 16th December, performance may not have been stunning. But with sales beating recent inflationary benchmarks, it has been a week of solid performance. However, the success has not been divided equally across the market. Pubs, for instance, saw growth of only 0.7%.
A confluence of Christmas parties, late-night sporting events, and convenient bank holiday scheduling may have all contributed to the strongest performance seen among managed bars this year, of 20.5% growth.
This will be a welcome boon for the beleaguered sector, which has spent most of the past year in decline. It is also a welcome reminder that although spending may be currently restrained, there is still remarkable consumer desire to make the most of special occasions.
Whether this momentum continues into early 2025, typically the toughest trading period for the late-night sector, remains to be been.
Celebration will be more muted across other segments. Food-led operators saw relatively stronger performance, with like-for-like growth of 3.4% in the ‘On The Go’on the go’ sector, and 2.1% in restaurants.
The Hospitality Business Tracker is produced by CGA by NIQ in partnership with RSM UK.
