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Hospitality Business Tracker finds sales flatten as cost pressures mount

27th Nov 2024 - 05:00
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Hospitality Business Tracker finds sales flatten as cost pressures mount
Abstract
Britain’s top managed hospitality groups achieved year-on-year sales growth of just 0.6% in October 2024, the latest edition of the CGA RSM Hospitality Business Tracker shows.

It marks the fourth month of below-inflation like-for-like growth in a row and means the Tracker is now at its lowest point since April 2024.

The flattening of sales reflects fragile consumer confidence amid ongoing cost increases, as well as poor weather for much of October. Weak growth raises concerns for trading over the crucial Christmas period, and adds to new pressures on hospitality’s tax burden set out in the Government’s recent Budget.

Karl Chessell, director - hospitality operators and food, EMEA at CGA by NIQ, said: “It’s clearly been a tough autumn for many restaurants, pubs and bars, and real-terms growth remains elusive.

“Conditions haven’t been helped by the Budget, which is imposing significant new costs on businesses via national insurance contributions while giving consumers little encouragement on spending. It is going to be a make-or-break Christmas for some operators, and while underlying demand for hospitality remains good, trading conditions are likely to remain very difficult well into 2025.”

October’s figures are mitigated to some extent by Halloween, which usually boosts trading but fell on a Thursday this year. Many celebrations will therefore have taken place over the following weekend, and Tracker data from early November shows they have contributed to a bright start to the month for pubs and bars in particular.

Written by
Edward Waddell