Hospitality delivers ‘bumper Christmas' but challenges remain, research shows
Hospitality businesses generated year-on-year sales growth of 8.8% in December 2023, according to consumer intelligence research.
The latest CGA RSM Hospitality Business Tracker, which surveyed over nearly 100 managed pubs, bars and restaurants, including brands such as Greene King, Giggling Squid and Prezzo, revealed the sector achieved like-for-like growth in every month of 2023.
December's figures were a sharp increase from the 4% recorded in November, with pubs leading the way with like-for-like sales growth of 9.6% in the final month of the year.
Restaurants saw an 8.3% boost, while bars bounced back from negative figures to 5.6%.
London's hospitality businesses topped sales growth in the UK for the 12th time in the last 13 months, hitting 11.2%.
Karl Chessell, director of hospitality operators and food, EMEA at CGA by NIQ, said: "December's Tracker numbers show the enduring appeal of pubs, bars and restaurants over the festive season. They are a welcome sign that pressure on consumers' spending may be easing, and the extra revenue is vital to groups as we enter quieter trading months.
"However, cost and labour issues mean some businesses remain under severe pressure. All operators will need to stay resolutely focused on the fundamentals of great hospitality in order to sustain real-terms growth throughout 2024."
Paul Newman, head of leisure and hospitality at RSM UK, added: "A bumper Christmas doesn't resolve ongoing challenges for the sector, particularly for smaller independent operators as they struggle to cope with the growing cost of borrowing, energy bills and ingredients. The first quarter is always a particularly acute time for the hospitality sector, with lower footfall, quarterly rent payments and higher VAT bills which have already been blamed for the closure of several high-profile restaurants."
CGA by NIQ collected sales data directly from 99 leading managed groups for October's edition of the CGA RSM Hospitality Business Tracker.
