The latest report from CGA by NIQ shines a positive light on the UK’s hospitality industry, revealing that bar sales surged by an impressive 20.5% in the week prior to Christmas.
Key Drivers of Bar Sales
This analysis, which contrasts the week commencing December 16, 2024, with the same timeframe in 2023, suggests that festive parties, thrilling late-night sports games, and the allure of bank holidays played a crucial role in driving bars to their peak performance of the year.
Despite facing limitations in consumer spending lately, the report suggests that revelers remain eager to mark special occasions with celebrations.
Yet, it’s still unclear if this momentum will carry over into early 2025, a period that often presents challenges for late-night venues.
Comparative Growth Insights
In comparison, the sales growth for restaurants and pubs during the holiday season was more subdued.
Restaurants focusing on takeout saw a 3.4% uptick, and traditional sit-down establishments experienced a 2.1% increase.
Pubs, on the other hand, showed minimal growth, with figures rising just 0.7%.
Looking at the broader picture, major hospitality players in Britain reported a year-on-year sales increase of 2.7% for the week starting December 16, 2024.
During this bustling period, well-known names such as BrewDog, Burger & Lobster, Revolution Bars, Rick Stein Restaurants, Walkabout, and Nandos participated actively in the CGA RSM Hospitality Business Tracker.
Challenges Ahead for Operators
Operators have had a tumultuous year, grappling with sales that have struggled to keep pace with inflation for six out of the past eleven months.
As they prepare for a rise in staffing costs anticipated after the government’s budget announcement in April 2025, the holiday season stands as a crucial opportunity: a chance to bounce back from previous challenges and gear up for what lies ahead.
Source: Harpers
