June sales in managed pubs and restaurants near 2019 levels

Sales in Britain's managed pubs, restaurant and bar groups dropped just 1% from the same month in 2019 amid Covid-19 challenges.

The figure was highlighted in the latest monthly Coffer CGA Business Tracker which showed strong demand in restaurants, with total sales up by 3%.

Pubs, however, recorded a 2% drop in turnover with mixed weather and restrictions dampening any benefit from the Euro 2020 football tournament.

Sales were down by 11% in bars, where social distancing and early closing continue to have a negative impact on footfall.

June's performance across the sector was a significant improvement on May, when total sales were down by 26% on May 2019. Regional sites performed better with sales outside the M25 up 4% in June, but down by 11% inside the M25.

Delivery and takeaway sales have continued to drive business, which have tripled from pre-Covid levels. Higher average spend by some customers also contributed to the solid month.

However, the Tracker also highlighted the lasting negative impact of the pandemic on the hospitality sector, with managed groups sales in the 12 months to June 2021 down by 27% on the previous 12 months. There were also around 9,000 fewer licensed premises compared to a year ago.

Karl Chessell, director, hospitality operators and food, EMEA at CGA, said: "June's figures are a testament to the enduring appeal of restaurants, pubs and bars, and the resilience of the businesses behind them. With an easing of Covid restrictions imminent, it suggests a bright outlook for the eating and drinking out sector.

"However, rising costs and limited capacity mean many businesses are still struggling to make a profit, and major challenges including debt burdens and a recruitment crisis are casting a long shadow. Hospitality remains fragile, and it will need sustained support and concessions from government in the months ahead if it is to help drive the UK's economic recovery."

A total of 55 companies across the managed pubs, restaurant and bar groups sector contributed data to the latest Tracker, compiled by research company CGA in partnership with the Coffer Group and RSM.

Photo: Shutterstock / John B Hewitt