Pubs cash in on bank holiday heatwave but fears grow for restaurant sector
A sunny spell through the August bank holiday helped London watering holes increase their late-summer sales, according to a closely-followed industry measure.
Thirsty punters gravitated to drink-led pubs in the capital, which enjoyed a five per cent like-for-like boost in sales compared to the same period last year.
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Drink-led pubs across the UK as a whole saw sales increase 4.1 per cent throughout August, according to the Coffer Peach Business Tracker.
“The weather, as is often the case, played a big part in shaping sales, with the hot weather in the run-up to and during the bank holiday weekend boosting pub trading and suppressing restaurant sales,” said Karl Chessell, director of CGA, which helps produce the tracker.
Fears of ‘more casualties’ in restaurant sector
Restaurants did not cash in on the heatwave to the same extent, with a 0.2 per cent drop in trading after a strong showing in July.
Paul Newman, accounting firm RSM’s head of leisure and hospitality, said: “The news for restaurants was less upbeat as consumers look to balance their household budgets by cutting back on eating out.
“With underlying costs outpacing top line growth, we fear some food operators will struggle to meet upcoming quarterly rent bills which could lead to further casualties in the UK mid-market dining sector.”
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The UK’s top restaurant chains fell to a loss of £82m last year as they struggled to stay afloat in the increasingly competitive casual dining sector.
The top 100 restaurant groups fell to the hefty loss in the year to the end of March, compared to a pre-tax profit of £102m the previous year, according to accountancy firm UHY Hacker Young.