Britain’s drink-led pub and restaurant
groups suffered a near wipe-out in sales during November, as England went into
four-week lockdown and tougher restrictions continued in Scotland and Wales.
Total sales for the month for drink-led
pubs were 88.8% down from November last year, with bar operators down by 90.2%,
according to the latest data from the Coffer Peach Business Tracker.
Sales at group-owned restaurants fell by
65.9% against the same month in 2019, while sales in food-led pubs were down by
85%.
Across the market, total sales were 79%
below November 2019. At the end of last month, underlying annual like-for-like
sales for the market were down by 43.7% overall on the previous 12 months.
All licensed premises were closed when
lockdown came into force on 5 November in England. With only limited opening
permitted in Scotland and Wales, just 6% of Britain’s managed pubs and
restaurants were trading by the last week of the November, with weekly sales
down by 88% across the market.
Karl Chessell, director of consultancy
CGA, which produces the tracker in partnership with The Coffer Group and RSM,
said total sales for the sector were 21% below 2019 levels in September and
33.9% down in October, before “hitting the buffers last month”.
He said: “November was a wipe-out for
the sector, and came on the back of difficult trading in both September and
October as the roll-out of more regional Covid-19 restrictions depressed sales.
“Although August with the Eat Out To
Help Out initiative saw healthy sales in food-led businesses, since then
trading has become progressively harder.”
He added: “With half the country still
in effective lockdown in Tier 3, and severe limits on trading in the other half
in Tier 2, it is hard to see the sector finding much to celebrate in the run up
to Christmas, always the market’s most important sales period.”
Trevor Watson, executive director of
valuations at Davis Coffer Lyons, said “November was another complete write-off
for most operators. Sadly, with effectively the whole country in Tier 2 or 3
for the first half of December at least, prospects for a reasonable bounce-back
in the most important month of the year are very weak indeed.
“The prospects for any loosening of
trading restrictions in key markets such as London and other major cities look
poor. Operators must resign themselves to very difficult conditions for the
next few months, with the restrictions on household mixing and the need for
substantial meals doing immeasurable harm to wet-led trade, which is the heart
and soul of so many communities.
“We hope and pray this Christmas that
vaccine progress will soon enable the politicians to swing their policies in
favour of saving the economy as well as saving lives.”
A total of 48 companies provided data to
the November tracker.