UK on-trade maintains post-recession growth

The UK’s major on-trade pubs and restaurants saw like-for-like sales collectively edge up 1.6% in February, continuing a near two-year trend of post-recession growth, according to figures from the Coffer Peach Business Tracker.

Total sales for the month among the 30 companies in the tracker sample, which include Mitchells & Butlers, Whitbread, Marston’s, Fuller’s and Hall & Woodhouse, were up 5.8% on February 2014 – boosted by the sector’s investment in new openings, especially among restaurant brands outside of London.

“February marked the 23rd consecutive month of positive like-for-like sales for the sector. It is showing steady but consistent growth, which illustrates the underlying strength of the market and the public’s desire to continue to go out to eat and drink,” said Peter Martin, vice president of CGA Peach.

“Casual dining brands are currently leading the sector, collectively recording a 3.4% like-for-like sales increase in February, including a 4.6% uplift for brands outside of the M25. Not only are groups opening new sites, but right across the market are now actively investing in refreshing their propositions and also being quicker to dispose of under-performing sites, so maintaining that positive sales momentum,” Martin added.

London continues to lead the pack with drink-led pubs and bars in the capital enjoying a 2.7% like-for-like boost against the same period last year, while trading in pubs outside the M25 was essentially flat.

Trevor Watson, director at Davis Coffer Lyons, part of the Coffer Group, said: “As the Coffer Peach tracker matures, we get to see a clearer picture of how the sector is evolving over a longer time frame. Corporate pub and restaurant operators are growing their businesses faster outside the M25 with many more openings because site availability is better. However, as more and more companies announce ambitious expansion plans, we are seeing more intense competition for new sites throughout the country. Within the M25, trading conditions are marginally better than in outer parts of the country, although the rate of new openings is somewhat slower simply because of the lack of sites.”

The Coffer Peach Tracker industry sales monitor for the UK pub and restaurant sector collects and analyses monthly performance data from 28 operating groups, and is recognised as the established industry benchmark.