Managed groups' sales up 3% in February
The lifting of Covid-19 restrictions helped Britain’s managed pub and bar groups raise sales above pre-pandemic levels last month, according to the latest Coffer CGA Business Tracker—but high inflation continues to make real-terms growth elusive.
The Tracker, produced by CGA in partnership with The Coffer Group and RSM, reveals groups’ like-for-like sales in February were 3% higher than in February 2019. This builds momentum from January, when comparative sales were 1% down, and a very challenging December 2021, when the Omicron variant pushed trading 11% below December 2019.
Bars saw a 7% growth, benefitting from the scrapping of requirements for vaccination passes in late-night venues. Pubs had a tougher month, ending down 1% on the pre-Covid levels of February 2019.
While the growth figures are encouraging, they are depressed by inflationary pressures. Recent editions of the Consumer Prices Index have shown that inflation is running at 5% to 6% over the last 12 months alone.
Trading is also struggling to recover in London, the Coffer CGA Business Tracker shows. Managed groups’ like-for-like sales inside the M25 in February were 4% below February 2019, compared to growth of 6% beyond the M25.
Karl Chessell, director – hospitality operators and food, EMEA at CGA, comments: “These figures show managed groups are building momentum after two years of turmoil. Delivery and late-night bars are particularly buoyant at the moment, and underlying demand for hospitality experiences remains strong. However, margins are being tightly squeezed by fast-rising costs, and the cost-of-living crisis is likely to dent consumer spending as the year goes on. Some businesses remain extremely vulnerable, and there’s a powerful case for government support on tax and other issues to help them fuel the UK’s post-COVID-19 economic recovery.”
CGA collected sales figures directly from 62 leading companies for the February edition of the Coffer CGA Business Tracker.
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