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Data has illustrated that the 'out' vote in June's Referendum has failed to impact July's sales for the UK's pub and restaurant chains, according to the latest Coffer Peach Business Tracker. The good news comes on the back of VisitEngland's announcement earlier this month that the hotel sector should also expect a record-breaking summer.
Despite the uncertainty currently permeating Great Britain and a feared spending drop, research found that sales in the 33 pub and restaurant groups monitored actually rose 0.3% from July 2015.
Peter Martin, vice president of CGA Peach, commented: "Pub groups did better than restaurant chains, but that was probably more to do with the good weather than anything else". He stated that key market figures and bosses will be "relieved" that sales have surpassed expectations and "has more than held up post-referendum," following the tumble they took after the vote.
However, prior to the referendum, the market was already fairly sluggish. Martin explained that "the Brexit vote doesn't appear to have altered that trend one way or another - and July's performance was actually stronger than April or May's."
"The eating and drinking out sector remained fairly resilient during the uncertainty of the recession and it may not be too optimistic to expect that people will continue to go out to eat and drink during the current uncertain times. Where they choose to go is another matter and in an underlying flat market that means competition will remain fierce."
Martin also noted that London's sales were up 2.9% in comparison to outside of the M25, which dropped by 0.5%, adding that: "The London market is looking more robust."
Paul Newman, head of leisure and hospitality at RSM, said that operators were "planning ahead" for the changes.
He continued: "The overall environment for deals remains strong. In fact, we completed more corporate finance transactions in July than in any other month so far this year with banks and private equity both continuing to deploy capital. The UK is a genuine world leader in leisure and hospitality and operators have consistently proved themselves to be adaptable, agile and resilient in the face of change."
It is unclear whether guests are celebrating, drowning their sorrows with a bottle of Merlot or simply enjoying the sunshine. But whatever the motivation, it is good news for the hospitality industry.
Photo: business-reporter.co.uk
