Hospitality Groups Poised to Rise as Grey Summer Concludes—August Sees 1.3% Growth

Britain’s Hospitality Groups Slip Under the Radar – but at least the Pubs are Still Giddy

August 2024 Snapshot

According to the latest CGA RSM Hospitality Business Tracker, the big players in the UK hospitality scene managed a 1.3 % year‑on‑year lift in sales this August. Not a blockbuster, but better than doing nothing.

What the Numbers Say

Every month of 2024 (except April) saw like‑for‑like growth – a sign that the business isn’t going south, just sideways.
Growth of just under inflation – this is the second month in a row that prices outpace actual sales gains.
Tracker topped 4 % only once since the year started.
Including new venues opened in the last 12 months, the total sales jump hit 3.7 %.

Sector Secrets

Pubs outperformed the sector: a solid 2.9 % y‑o‑y rise even when the weather decided to rain beer.
Restaurants saw a modest 0.8 % increase; still not the sizzling surge anyone hoped for.
Bars, meanwhile, are on a long streak of negative numbers – a steep drop of 9.0 %.
The on‑the‑go crowd did a bit better, with a 5.0 % growth.

Location Matters

Inside the M25 the sales ticked up by 1.2 %.
Outside the ring, venues saw a slightly better 1.4 % jump – the only second time this year the capital lagged behind the rest of the country.

Industry Voices

Karl Chessell, Director for Hospitality Operators and Food at CGA by NIQ, summed it up: “August’s figures complete a modest summer. With the weather and consumer confidence both under‑whelming, real‑terms growth has been elusive. Some bars and restaurants struggle to keep people coming, but pubs shine, especially since chilly temps ruin those lovely beer gardens and terraces.”

He added, “Consumers are still eager to eat and drink out when they can, but operators hope they’ll feel confident enough to spend more as we head into the crucial final quarter of 2024.”

Saxon Moseley, Head of Leisure and Hospitality at RSM UK, weighed in: “After a lackluster summer, the hospitality sector is hoping for extra govt support in the Autumn Budget – maybe a tweak to business rates, a VAT cut to match our European rivals, and a drop in national insurance contributions to help with rising wages.”

Moseley warned, “A ‘painful’ Budget could dent consumer confidence, pulling back discretionary spending and investment. That would stall any recovery and put more pressure ahead of the festive trading season.”