Marketing and deals help chain pubs and restaurants through the recession

17 August 2009 by
Marketing and deals help chain pubs and restaurants through the recession

Britain's leading restaurant and pub operators are starting to see signs of recovery despite the recession thanks to continued marketing and promotional deals, research has found.

July sales for the 13 major chains were up by 1% compared to last year, according to the monthly Coffer Peach Business Tracker, which is run by consultancy Peach Factory in partnership with auditors KPMG, UBS bank and property agents the Coffer Group.

The rise in sales confirms a continued trend in improving market conditions for the larger chains after sales grew 0.6% and 0.4% in May and June respectively.

"The results confirm the continuing trend for bigger players to outperform independent operators and to gain market share, with total sales up 4.6% against 2008," said Peter Martin, founder of the Peach Factory.

"Their focus on improved marketing, promotions and delivering value is having an undoubted impact on the top-line."

Jonathan Leinster, head of European leisure and tobacco research at UBS Investment Bank, said the increase in domestic holidays had contributed to the sales boost.

"Generally, managed pubs companies have reported positive like-for-like sales since February and the improvement in July appears to show that this trend will continue over the summer," he said.

Thirteen major pub and restaurant companies make up the Business Tracker sample, including Mitchells & Butlers, Whitbread, Punch Pub Co, Gondola, Tragus and Pizza Hut.

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By Emma White

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