Sales of the restaurant group are expected to grow moderately as a wide range of sectors suffer from the downturn caused by heavy rains in April.

Business

This is the first year-on-year decline in monthly sales since September 2022 and is in contrast to March, when the group saw a year-on-year decline. Achieved 5.2% growthThanks to dry weather and an early Easter.

Last month faced tough comparisons with April 2023, which included the full Easter holiday.

The tracker, created by CGA by NIQ in partnership with RSM UK, shows that the slight slump in sales could be a sign that some consumers are still hesitant to spend despite easing inflation in recent months. Suggests.

“April was a tough month for the hospitality industry after 18 consecutive months of year-on-year growth,” said Karl Chessell, director at CGA by NIQ.

“This is a reminder of the very close correlation between weather and sales, and also a sign that some consumers are saving eating out and dining out until special occasions and holidays like Easter.”

“The brighter weather in May should help encourage more people to eat and drink, and the medium- to long-term outlook for hospitality remains positive, although businesses and consumers alike will face severe cost pressure. It is clear that we continue to face this.”

The tracker shows the impact of the weather on pubs, with sales down 1.5% as consumers avoided beer gardens and terraces.

Restaurants, benefiting in part from wetter weather, achieved modest growth of 1.2 percent compared to the same period last year.

Bars were hardest hit, with sales 15.1% below April 2023 levels, while the takeaway sector was down 4.2%.

Hospitality groups are performing better in London than elsewhere, according to the tracker, with sales within the M25 up 0.3% in April compared to last year, while outside the M25 they were down 2.2%.

“April’s poor performance was undoubtedly influenced by the Easter holidays, which had largely slumped in the previous month, but bad weather and weak consumer confidence also contributed to the first sales decline since 2022. Deaf,” Saxon Moseley said. Head of Leisure and Hospitality at RSM UK.

“While there is reason for optimism, with consumer confidence expected to rise later this year on the back of rising real wages and interest rates starting to fall, this comes after an already lackluster first quarter for many. Moon’s disappointing results will do little to boost morale.

“The sporting industry desperately needs extended periods of dry, warm weather to herald a long summer ahead as supporters flock to their local pubs and bars.”

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“The UK’s top hospitality groups saw their sales fall by 1.7% year-on-year in April 2024 due to widespread wet weather, the new CGA RSM Hospitality Business Tracker has revealed…”
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