Outdoor hospitality sees 'encouraging' first week of sales though recovery has long way to go

By James McAllister

- Last updated on GMT

Outdoor hospitality sees 'encouraging' first week of sales though recovery has long way to go

Related tags Alfresco dining Coronavirus lockdown Cga

Hospitality venues in England enjoyed a stronger bounce in sales than they did after the first national lockdown in July 2020, despite being limited to outdoor service.

Data from CGA shows that like-for-like sales at pubs, bars and restaurants that were trading in the seven days from last Monday (12 April) were 45% higher than in the week from 4 July 2020, when they were able to resume both inside and outdoor service.
Like-for-like sales at venues that were open last week were 21% down on the equivalent week in 2019—though that period did include the Easter weekend. But when compared to the previous week in April 2019, like-for-like sales were 1% higher. 

However, with data from CGA and Alix Partners’ Market Recovery Monitor highlighting that just 23% of England’s licensed premises had reopened for outdoor service​ by the middle of last week, total sales remain far below pre-pandemic levels.

Trade bodies have reiterated warnings that recovery in the sector still has a long way to go, with both UKHospitality and the British Beer & Pub Association (BBPA) noting that businesses will not be viable until all restrictions on trading are dropped.

Indoor hospitality settings will not unlock until 17 May at the earliest, according to the Government's roadmap out of lockdown, with social contact restrictions set to remain in place until at least 21 June.

“It is wonderful to see busy venues again, as people can at long last meet with friends after three months of lockdown, albeit only outdoors," says Kate Nicholls, UKHospitality chief executive.

"Trading in such circumstances was always likely to benefit from a welcome initial spike but the return of limited trading cannot overshadow the fact most venues remain closed.

"For any semblance of widespread viability to return to the sector, it is crucial that the Government delivers on its commitment to dropping all restrictions from 21 June.

"If that milestone lapses, then the Government will need to be poised to provide further support for the sector—an investment that would be fully justified, given our ability to drive economic recovery.”

CGA’s breakdown of data shows that drinks sales in trading venues last week were 49% higher than in the reopening week of July 2020, while food sales were up 34%.

The first day of trading saw like-for-like drinks sales more than double that of the second Monday of April 2019​, as consumers enthusiastically celebrated the reopening of pubs and bars.

Comparative sales eased in subsequent days, but across the week they were 10% higher than the comparable week of April 2019.

“These sales figures are very encouraging for our sector and show just how much we have all missed our pubs these last few months," says Emma McClarkin, chief executive of the BBPA.

"Despite the positive news, it is imperative we remember that whilst they still have restrictions our pubs remain unviable and the many are still to open.

"Only when all our pubs can fully reopen as normal will they be viable businesses and in the green once more.” 

Related topics Trends & Reports Casual Dining

Related news

Show more

Follow us

Hospitality Guides

View more