CLH News’ Post

Weather Cools Euros Effect As Hospitality Groups Score 2.9% Sales Growth In June Britain’s top hospitality groups recorded year-on-year sales growth of 2.9% in June 2024, the latest CGA RSM Hospitality Business Tracker reveals. The figure is down slightly from May’s rate of 3.6%, but ahead of the current rate of inflation, as measured by the Consumer Prices Index, and is the eighth period of growth in the last nine months. The Tracker—produced by CGA by NIQ in partnership with RSM UK—shows restaurants were the best-performing channel in June, with year-on-year sales growth of 4.7%. While the Euros brought sports fans into pubs for matchdays involving England and Scotland the damp weather kept people away from beer gardens and terraces, and sales in this channel rose only 2.7% above June 2023. The on-the-go segment achieved 4.0% growth, but bars were down by 4.0%. Trading was notably stronger in London, where the Tracker recorded sales growth of 4.4%, compared to 2.5% outside the M25. The capital has outpaced Britain as a whole for all but one month in 2024. Karl Chessell, director – hospitality operators and food, EMEA at CGA by NIQ, said: “June’s solid if unspectacular growth capped a decent first half of the year for Britain’s hospitality groups. The weather has been far from ideal for pubs and drinks suppliers, but England’s progress in the Euros has been a very welcome lift for venues screening games.” “A good month for restaurants shows consumers remain eager to eat out, and we can be optimistic that people will loosen their spending as some cost pressures ease. Nevertheless, with the Tracker hovering only just above inflation, groups will have to work hard to achieve meaningful sales growth in the second half of 2024.” Saxon Moseley, head of leisure and hospitality at RSM UK, said: “Pub operators will be disappointed with the modest increase in sales generated by the early stages of the Euros. However, a second month of inflation beating growth for restaurants offers further evidence, and hope, that consumer purse strings are loosening against a backdrop of real wage increases and anticipated interest rate cuts.” “ There was positive news for the industry in the King’s Speech around the apprenticeship levy amendments and nighttime safety, but significant headwinds remain with confirmation of zero hours contracts reform and proposed increases to the national minimum wage. Combined with a lack of clarity around business rates, operators will be looking for further certainty from the new government in the second half of the year.” Read More:

Celebrations And Early Easter Boost Growth In March Britain’s top hospitality groups achieved above-inflation like-for-like sales growth of 5.2% in March 2024, the latest CGA RSM Hospitality Business Tracker reveals. Many operators will have enjoyed the boost to trading that events such as Mother’s Day and St Patrick’s Day brought, but the high growth metrics seen in the Tracker have been aided by early Easter Bank Holiday revenues falling into March 2024, while last year Easter trading fell into April 2023. The Tracker—produced by CGA by NIQ in partnership with RSM UK—shows celebrations delivered particularly strong growth for the managed pub sector, where like-for-like sales were up by 7.2% in March. Growth was softer for restaurants at 3.4%, and the On The Go segment has seen 5.2% decline. Whilst bars still recorded a decline of 0.5% in March, this is somewhat of an improvement from the 13.6% and 7.4% declines in January and February respectively, showing the impact the early Bank Holiday weekend celebrations and holidays has had on the hospitality sector this month. For the first month since November, restaurant, pub and bar groups achieved higher growth outside London than within the capital. March sales inside the M25 were 4.0% ahead of last year, but ahead by 5.7% beyond it. Karl Chessell, director – hospitality operators and food, EMEA at CGA by NIQ, said: “These figures are encouraging for hospitality after a slow start to 2024 and show that people remain eager to celebrate holidays and special occasions in restaurants, pubs and bars. While spending remains tight for many consumers, we can be cautiously optimistic that their confidence will continue to increase in 2024 in line with an easing of inflation. Operators still face severe headwinds, and it may be some time before they generate sustained real-terms growth, but March showed the sector is moving in the right direction.” Saxon Moseley, head of leisure and hospitality at RSM UK, said: “An early Easter break and the arrival of Spring weather gave rise to inflation-beating sales growth in March, with pubs the main beneficiaries as friends and family opted to celebrate in their local establishments. After two months of sluggish growth to start the year, operators will be hoping these results represent the green shoots of consumer confidence returning to the market as inflation slows and energy prices fall. The sector has seen several high-profile closures in recent months, with more challenges to follow including minimum wage and rates increases in April and changes to tipping legislation in July. All will be hoping that this sales momentum can continue into the summer months to give businesses some much needed breathing space and help balance the books.” Read More:

𝗪𝗲𝗮𝘁𝗵𝗲𝗿 𝗰𝗼𝗼𝗹𝘀 𝗵𝗼𝘀𝗽𝗶𝘁𝗮𝗹𝗶𝘁𝘆 𝗴𝗿𝗼𝘂𝗽 𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗮𝘀 𝘀𝗲𝗰𝘁𝗼𝗿 𝘀𝗲𝗲𝘀 𝟭.𝟱% 𝘀𝗮𝗹𝗲𝘀 𝗴𝗿𝗼𝘄𝘁𝗵 𝗶𝗻 𝗝𝘂𝗹𝘆: 😍 Britain’s managed hospitality groups reported year-on-year growth of 1.5% in July 2024, down from June’s rate of 2.9%, the latest CGA RSM Hospitality Business Tracker reveals. As July started with the peak of the 2024 Euros, including the quarter, semi-final and final games, Britain’s pubs enjoyed a more positive outcome from the tournament than the England team, experiencing like-for-like growth of 4.9%. The best performing segment in July, pubs within the M25, performed especially well, with 9.9% like-for-like growth. It was a slightly more negative picture for other segments as consumers shifted their spend towards pubs. Restaurant performance saw steep declines, dropping from a 4.7% increase in June to a 2.1% drop in July. Bars had another negative month, down by 6%, while the on-the-go segment saw like-for-like growth of 1.5%. CGA director Karl Chessell said: “With most positive growth being seen in the pub sector in July, this had a knock-on effect to other hospitality venues as they saw like-for-like drops in performance. For hospitality as a whole, this isn’t necessarily a negative thing. The uplifts seen based on key events within the month show that whilst the cost-of-living pressures are still ongoing, consumers are still making those all-important visits to hospitality venues. As we move into the back end of summer, with warmer weather, and an upcoming bank holiday at the end of the month, we hope to see growth spread more equally across key segments.”

Weather Cools Hospitality Groups Performance Whilst Pubs Win The Euros Britain’s top hospitality groups achieved year-on-year growth of 1.5% in July 2024, down from June’s rate of 2.9%, the latest CGA RSM Hospitality Business Tracker reveals. As July started with the peak of the 2024 Euro’s, including the quarter, semi-final and final games, Britain’s Pubs enjoyed a more positive outcome from the tournament than the England team, experiencing like-for-like growth of 4.9%. The best performing segment in July, and the heart of England’s Euro’s support, Pubs within the M25 performed especially well with 9.9% like-for-like growth. It was a slightly more negative picture for other segments as consumers shifted their spend towards pubs. Restaurant performance saw steep declines, dropping from +4.7% in June, to –2.1%. Bars had another negative month, down by -6.0%. The on-the-go segment saw like-for-like growth of +1.5%. Karl Chessell, director – hospitality operators and food, EMEA at CGA by NIQ, said: “With most positive growth being seen in the pub sector in July, this had a knock-on effect to other hospitality venues as they saw like-for-like drops in performance. For hospitality as a whole, this isn’t necessarily a negative thing. The uplifts seen based on key events within the month show that whilst the cost-of-living pressures are still ongoing, consumers are still making those all-important visits to hospitality venues. As we move into the back end of Summer, with warmer weather, and an upcoming Bank Holiday at the end of the month – we hope to see growth spread more equally across key segments.” Saxon Moseley, head of leisure and hospitality at RSM UK, said: “Much like the Euro 2024 final, there were winners and losers in July’s results. While pubs reaped the benefits of a sports-fuelled July, restaurants and bars saw negative like-for-like sales, with some operators even closing early due to cancelled bookings and reduced demand. With disposable incomes still recovering from the cost-of-living crisis, these results do demonstrate that there is only so much set aside for leisure spending, underscoring the intense competition for customers across different segments of the market. Well run businesses with differentiated offerings and flawless experiences will continue to do well as real wages rise and confidence returns in the second half of the year.” Read More:

Customer spend at hospitality venues increases https://ift.tt/dSnGIo0 New data from CommBank has confirmed customers increased their spending at hospitality venues last month. The CommBank Household Spending Insights Index report showed an overall rise in spending of 1.8 per cent for the month of August, with 10 of 12 spending categories showing positive growth. Hospitality was the highest growth category in August, increasing by 5.2 per cent compared to July, which saw a small -2.6 per cent decline. The August increase was likely highly affected by Father’s Day, which fell on 1 September this year, meaning spending would have taken place during the month of August. The last time such increases occurred was in August 2019, which saw the hospitality category up by 4.2 per cent. However, a “return to softer hospitality spending would be expected in September”. The largest contributions to spending in the sector were restaurants, pubs, taverns, and bars, fast-food outlets, and food delivery services. But the findings also indicated reduced spending at cafes, breweries and wineries, and caterers. Overall, all states and territories recorded growth in August. The Northern Territory showed the highest rate of household spending growth in August, sitting at 3.2 per cent followed by the Australian Capital Territory (2.5 per cent), Victoria (2 per cent), Tasmania (1.9 percent), Queensland (1.8 per cent), New South Wales (1.6 per cent), Western Australia (1.3 per cent), and South Australia (0.9 per cent). Western Australia, the Northern Territory, and New South Wales are currently all running above the national average of 3.7 per cent. Tasmania and Victoria are running at the national average of 3.7 per cent/year, however Queensland, South Australia, and the ACT are all below the national average. The post Customer spend at hospitality venues increases appeared first on hospitality | Magazine. via hospitality | Magazine https://ift.tt/L1WgFXm September 11, 2024 at 08:47PM

Hospitality Ready To Invest And Grow, But Rising Costs Remain A Barrier A joint survey by UKHospitality, the British Beer & Pub Association, Hospitality Ulster and the British Institute of Innkeeping showed that pubs and hospitality venues have the appetite to invest in the future of their businesses, despite the wide range of cost pressures they continue to face. The survey revealed the clear desire from businesses to invest, both in development and training of their teams, and in venue refurbishments and improvements, but it also showed the challenges around rising wage bills, food and drink costs and disproportionately high taxation in relation to other sectors. Despite these pressures, 95% of operators are planning to invest in customer service, 92% in staff training, and 71% in venue refurbishments, all up significantly on last quarter. Research from CGA by NIQ revealed venue closures have slowed in recent months and despite the cost-of-living crisis, consumers are prioritising visiting hospitality venues as an “affordable treat” that they “most look forward to”. At a time when people are thinking carefully about spending their money, hospitality remains key to unlocking the growth that is lacking in the UK economy at present. As the UK’s third largest employer, the hospitality sector has the power and agility to act quickly and be part of this much needed growth, but it desperately need confidence that any increased trading will be converted into profit, before they will invest further. When comparing Q1 2024 to Q1 2023: - Despite more than 33% of operators seeing an increase in revenues, 70% of venues have seen a reduction in profit, with nearly 50% of venues operating at a loss or just breaking even. - One-in-four businesses still remain completely exposed, having no cash reserves, with nearly one-in-two having six months or less. - 66% of businesses now have significantly increased wage costs. In a joint statement, the trade bodies said: “Our regular survey of our joint memberships showed the resilience of our sector, as well as an appetite to invest in teams and venues for the future. Consumers choosing to spend their disposable income in pubs, restaurants, hotels, and cafes is no surprise, as we provide a much-needed opportunity for fun, celebration and vital social connection, but in order for our members to survive and thrive, they need to be profitable. “Their profitability has been heavily impacted by high inflation in food and drink, high energy costs, disruption from rail strikes and the impact of increased labour costs, that have had a ripple effect at every level. “The sector is innovative, adaptable and has the potential to provide much needed growth for the economy, creating vital local employment and bolstering local supply chains, all whilst supporting essential social connection in high streets, towns and cities. In order for operators to invest in this potential, however, the sector also needs a fairer, mo…

Grey Summer Ends with 1.3% Growth for Hospitality Groups in August Britain’s leading hospitality groups achieved modest year-on-year sales growth of 1.3% in August 2024, the latest edition of the CGA RSM Hospitality Business Tracker reveals. Groups have now achieved like-for-like increases in every month of 2024 except April. However, it is a second successive month of below-inflation growth, and the Tracker has topped 4% only once since the start of the year. Total sales growth in August, including new venues opened during the last 12 months, stood at 3.7%. The Tracker—produced by CGA by NIQ in partnership with RSM UK—shows managed pubs outperformed the licensed sector as a whole in August, with year-on-year growth of 2.9% despite disappointing weather. Restaurants recorded a 0.8% increase, but bars continued a long run of negative numbers with a drop of 9.0%. The on –the go segment achieved 5.0% growth. Sales rose by 1.2% inside the M25 in August, while venues further afield fractionally outperformed with 1.4% growth. It is only the second time this year that the capital has recorded weaker figures than the rest of the country. Karl Chessell, director – hospitality operators and food, EMEA at CGA by NIQ, said: “August’s figures complete a modest summer for hospitality groups, and with the weather and consumers’ confidence both underwhelming, real-terms growth has been elusive. While some bars and restaurants have found it hard to sustain footfall, the picture has been brighter at pubs, especially given the impact of the cool temperatures on beer gardens and terraces. Consumers remain eager to eat and drink out when they can, but operators will be hoping they will feel confident enough to spend more freely as we move towards the crucial final quarter of 2024.” Saxon Moseley, head of leisure and hospitality at RSM UK, said: “After a lacklustre summer, the hospitality sector will be hoping for further government support in the Autumn Budget, including business rates reform, a reduction in VAT to bring the sector in line with our European counterparts and a fall in employer national insurance contributions to help operators cope with increases in wages. All these things can help reduce the cost burden on hospitality and, crucially, stimulate sales growth. However, a “painful” Budget could dent consumer confidence and with it, discretionary spending and business investment which would hold back any recovery and apply more pressure ahead of the all-important festive trading season.” Read More:

Britain’s hospitality sector has recorded its first quarter-on-quarter growth in outlets in two years, the new Hospitality Market Monitor from AlixPartners and CGA by NIQ reveals. The exclusive report shows a 0.5% increase in the number of licensed premises between March and June 2024 – equivalent to 462 net new openings, or five per day. Graeme Smith, AlixPartners’ managing director, said: “The easing of the very significant pressures that have challenged businesses for the past 18 months – including spiralling energy costs, rising food, drink and labour inflation, and higher interest rates – has paved the way for a far more positive outlook." Read the full Hospitality Market Monitor > https://lnkd.in/g_SRZugv

I have attended lots of hospitality industry events in recent months (Arena the hospitality networking association, Simon Stenning, Chris Sheppardson, Entrepreneur's Partnership, Caterforce Ltd conference) and there is a consistent message of needing to work hard in 2025 to find growth opportunities. But what if many of the growth opportunities are sat right in front of our eyes (or counters, tables, bars)? I dine out a lot and for months I've sat 'in premise' thinking 'if a member of staff was to ask me if I wanted another glass of wine, or something to go with my coffee, or have a mini starter of olives/bread & oil to nibble on while reading the menus' I'd probably have said 'yes'. This got me and Mark Bentley talking last week - am I expecting too much, or do others feel the same as me? So we at TWC Group polled the nation last week and spoke to 752 UK adult consumers (natrep) to find out whether they experience the same when dining out - ie they end up spending less than they were going to, willing to or intending to, not because the outlet was cheaper than expected, but because the service was too slow or for other operational reasons. The answer? Almost 35% of consumers who dine out (which is 87% of the UK population, by the way) say they have spent less than intended on some of their recent meals out. This post is not aimed to be critical - it is aimed to trigger debate about 'customer spend optimisation per visit' (CSOV). We should recognise and applaud those outlets which really succeed in delivering the highest CSOV - those operators which enable customers to spend what they were going to spend (and some). The photo is of a TWC Christmas lunch last week at The Humble Grape (Fleet St). The team working that day were terrific - always enquiring whether we needed or wanted anything else. Talking to my good friend (and ex colleague) Blake Chapman on Monday, he highlighted a local pub to him which appears to have someone working there whose primary role is to walk around each table and ask guests if they'd like another drink/snack/coffee etc. Hope this post provides food for thought.....we will be launching a full research insights programme for 2025 in January. Contact us for more information as we attempt to report 'the what and the why' (what happened and why it happened). #research #insight #wholesale #foodservice Tanya Pepin Richard Barr Sarah Coleman Jayne Webb Kelly Pye Elaine Baker Olly Brown PS Andy Dixon and I met yesterday to scope out a review of the foodservice sector 2024/25 (we'll share it with you in the New Year).