This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
Festive trade finds its footing: comparing Christmas 2024 and 2023 hospitality sales
The Christmas period has always been a cornerstone of the UK’s on-trade calendar, providing a vital opportunity for pubs, bars and restaurants to offset the pressures of economic headwinds.
A comparison of Christmas trading in 2024 and 2023 reveals a sector grappling with evolving consumer behaviours and uneven growth across different categories, though still buoyed by the seasonal spirit.
2024: uneven gains, but bars shine
The week commencing 16 December delivered year-on-year sales growth of 2.7%, a less dramatic improvement compared to 2023 but a positive sign nonetheless, especially given the challenging trading conditions throughout the year.
As reported by CGA by NIQ in partnership with RSM UK, managed bars emerged as the standout segment, posting 20.5% growth. This surge is attributed to a confluence of factors, including Christmas parties, late-night sporting events and well-timed bank holidays.
Other segments saw more modest gains. Food-led operators recorded like-for-like growth of 3.4% in the on-the-go sector and 2.1% in restaurants. Pubs, however, struggled, achieving only a marginal 0.7% increase. These figures suggest a more restrained consumer appetite for traditional pub experiences compared to the broader resurgence seen in 2023.
2023: a stronger festive lift
In 2023, the on-trade saw a robust festive uplift, with drinks sales at pubs and bars in the final fortnight 7% above those of 2022, according to CGA by NIQ’s Daily Drinks Tracker.
Beer and cider led the charge, with sales in both categories up by around 12% year-on-year. The week to 23 December performed particularly well, with sales 9% ahead of 2022. This momentum carried through to Christmas Day, where sales were 10% higher, and to 22 December, a Friday in 2023, which emerged as the standout day with a remarkable 21% increase.
However, not all categories fared equally well. Spirits sales, for instance, were mixed: up 3% in the week to 23 December but plummeting 11% below 2022 in the post-Christmas week. This may have reflected shifting consumer preferences, with some turning away from stronger drinks during the quieter period.
Comparing consumer behaviour
A closer look at the numbers reveals diverging consumer dynamics between the two years. The 2023 festive period benefitted from a more unified uplift across categories, with beer, cider and wine all performing strongly. In contrast, 2024’s growth was largely concentrated in bars, suggesting the sector’s ability to draw consumers for event-driven experiences while other areas struggled with softer demand.
Spirits, which experienced a mixed performance in 2023, were not singled out in the 2024 data, but the ongoing slump in the category as of early 2024 suggests challenges remain. The subdued growth in pubs also hints at a potential shift in consumer preferences, perhaps away from more traditional venues or offerings.
Outlook for the New Year
While both years underline the importance of the festive season in bolstering hospitality sales, the broader context is markedly different. The strong finish to 2023 provided a platform for cautious optimism despite the looming pressures of Dry January and economic uncertainties. In contrast, 2024’s pre-Christmas performance, while encouraging in parts, leaves operators bracing for what is expected to be a challenging start to the new year.
As 2025 begins, the hospitality sector will need to adapt to evolving consumer behaviours and continue leveraging key trading moments to navigate an unpredictable landscape. For now, the resilience shown over consecutive Christmas periods serves as a testament to the enduring appeal of shared celebrations in pubs and bars, even in challenging times.
Related news