UK Hospitality Crashes & Clinks: Pubs Rock, Restaurants Suffer
The latest CGA RSM Hospitality Business Tracker has pulled back the curtain on July’s May‑June cocktail of fortunes for Britain’s top hospitality giants. Overall, the sector slipped to a modest 1.5% year‑on‑year gain, a drop from June’s 2.9% climb. The real drama? Pubs don’t just talk the talk – they walk it.
Euro 2024: A Stadium of Success for Pubs
July kicked off with the Euro 2024 fireworks – season, quarter‑final, semi‑final, and the grand finale. The cheering crowds turned pubs into fairy‑land pockets of profit, with a 4.9% growth that mirrored the fans’ excitement. Now, here’s the juicy twist: the M25 ringside pubs jumped an impressive 9.9% – the real MVPs of the tournament’s binge‑party.
When the Fans Get Rushed, Restaurants Get Bushed
Not all sectors caught the Euro‑spark. Consumers took their cash to the pub scene and largely ignored kitchens and cocktail bars. Restaurants, once sizzling with a +4.7% in June, dipped ‑2.1% in July. Bars joined the slump, slumping down to ‑6.0%. The on‑the‑go sector fought a respectable 1.5% rally, but it’s not a home‑grown record.
Industry Leaders Sound the Alarm and Hold Their Hearts
- Karl Chessell (CGA Director) explained: “The pub surge in July didn’t just hit the till – it rippled into other venues, causing dips for restaurants and bars. While this might look negative at a glance, the data shows that people still crave hospitality, even with cost‑of‑living nerves.
- Saxon Moseley (RSM UK Leisure & Hospitality Head) added: “Picture the Euro final – winners and losers abound. Pubs were winners; restaurants and bars lost out. Some pubs were forced to close early because bookings vanished, leaving bar staff clutching empty glassware. With disposable incomes still on the rebound, we see a fierce battle for customers. The businesses that thrive are those with boutique vibes, top‑notch service, and experience magic. When wages perk up and confidence lights up again in the back half of the year, the good stand out.”
What’s Next? Lessons for the Coming Holiday
As we slide into the warm, relaxed part of summer with a Bank Holiday looming, the hope is that growth will level out across the board. The takeaway: a bit of fun, a dash of good wine, and a point of laughter are your secret weapons for diving back into profitability.
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