The Caterer
Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

Pubs and restaurants report flat trading in February

17 March 2016 by

Pub and restaurant groups saw like-for-like sales remain flat in February compared with the same period last year, according to the latest Coffer Peach Business Tracker.

Total sales, which include the impact of new openings, were up 3.2% on 2015 for the 31 companies studied including Mitchells & Butlers, Pizza Hut, Whitbread, Pizza Express, Spirit Group and Young's.

The capital saw the best trading for February, with like-for-like up 0.9%, against a 0.3% decline for the rest of the country.

Peter Martin, vice president of CGA Peach, which produces the Tracker, in partnership with Coffer Group, RSM and UBS, said: "The numbers will be a disappointment for the sector, coming on the back of a bright start to the year, with January like-for-likes up 1.9%, but they reflect a growing sense in the market that 2016 will be a tougher year than last."

He said this year will also see restaurant openings slow as the market "becomes a little more cautious".

Casual dining chains collectively did better than the wider pub and bar market, with like-for-likes up 1.6% on February 2015 against a 0.8% fall for managed pubs.

The underlying trend shows year-on-year sales, for the 12 months to the end of February, up 1.7% on last year, with out of London just marginally ahead of the capital.

Trevor Watson, executive director, valuations, at Davis Coffer Lyons, said: "The market continues to show ‘steady as she goes' progress in terms of overall sales, with like-for-like figures being pegged back by the rate of new openings."

He added: "Although consumer confidence is steady, we expect to see some business investment decisions held back until after the referendum which could lead to increased corporate activity in Q3 and Q4 of 2016."

Paul Newman, head of leisure and hospitality at RSM, said: "Although disappointing, it comes as no real surprise that the surge in supply and convergence across eating and drinking-out formats is now starting to slow growth and put downward pressure on like-for-like sales. Competition among operators is set to intensify and the winners will be those who can best balance site expansion with innovative menu development and competitive pricing."

January boost for pubs and restaurants outside London, says CGA Peach >>
UK casual dining sees rise in sales but pubs feeling flat, says CGA Peach >>
Eating-out growth boosts pubs and restaurants in November >>

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking