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'Disappointing' on-trade sales in February

Pub and restaurant sales fell 3.7% in February, put down to a "prolonged hangover" after Christmas or fresh tightening of consumer purse strings.


According to the Coffer Peach Business tracker, like-for-likes fell by 3.7% in February, following a 2.1% drop in January.


Total sales for the month, including new openings, were up marginally to 0.6%, while February sales were up 8.4% on January.


"These are disappointing figures, as over the past two years the informal eating and drinking-out market has generally kept its head above water despite everything the economy has thrown at it," said Peter Martin of Peach Factory, who produces the report in partnership with KPMG, UBS and the Coffer Group. The tracker collects monthly data from 23 pub and restaurant groups.


"It might be a prolonged hangover after what was bumper trading over Christmas and the New Year, or it might signal a new tightening of consumer belts - certainly poor weather played it's part. The market will do well to remain cautious, but also focused on giving customers, who may be looking for something new, a compelling reason to go out. We are still predicting another essentially flat trading year," Martin added.


Martin said discounting and vouchers will be a "major challenge" for groups in the coming year as many groups are keen to curtail this activity.


Richard Hathaway, KPMG's head of travel, leisure & tourism, said that while trading conditions  would remain tough for a while, the past 18 months had demonstrated "just how resilient the UK's eating and drinking out market is".

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