Hospitality groups grow 3.6% in May

Britain’s leading hospitality groups achieved year-on-year sales growth of 3.6% in May 2024 despite disappointing weather in many parts of Britain, the latest CGA RSM Hospitality Business Tracker revealed.

 

It is a quick return to growth after a 1.7% drop in trading in April, which followed six consecutive months of positive numbers. May’s figure is also above the current rate of inflation, as measured by the Consumer Prices Index.

 

An easing of some household bills, along with two bank holiday weekends, provided a boost to consumer spending during the month.

 

The Tracker – produced by CGA by NIQ in partnership with RSM UK – shows year-on-year growth was highest in the pub sector at 4.4%, while restaurants achieved 3.8%. Bars saw a 2.7% drop, though this is a substantial improvement on April’s figure. The on-the-go segment was 1.6% down.

 

For the fifth time in six months, hospitality groups performed better in London than elsewhere in Britain. May sales were 4.1% ahead of last year inside the M25, while increasing by 3.5% beyond it.

 

Karl Chessell, a director at CGA by NIQ, said: “May brought a relief to return to above-inflation growth in hospitality after a blip of negative numbers in April. Wet and cool weather continues to work against pub operators, but they and restaurants may be starting to feel the benefit of a relaxation of spending among some consumers, especially over occasions like bank holiday weekends.”

 

While he acknowledged that bars and on-the-go sites remain short of where they could be, he identified the general election, greater economic certainty and brighter summer weather as key factors which could help unlock further spending.

 

Photo: Hospitality groups performed better in London than elsewhere in Britain. Credit: Shutterstock