The hospitality industry has seen a resurgence in the first six months of the year with the top 10 most populous cities outside London bouncing back strongly from the pandemic blues.
According to the latest ‘Top Cities’ research from CGA and Wireless Social, solid sales growth in restaurants, pubs and bars in those cities has improved on the benchmarks of 2019 in six consecutive four-week periods this year.
Sales over the latest four-week period, to 2 July, were an average of two per cent higher than at the same time in 2019.
Operating costs hit 55 per cent
It comes as another survey shows that operating costs have hit more than 55 per cent of turnover before rent, the highest since 2007.
The UKHospitality Christie & Co Benchmarking Report, covering over 5,000 hospitality businesses, shows that increased costs have been driven by the soaring utility, premise and operational costs being faced in the industry, as operators attempt to rebuild following the pandemic.
Top of the ‘Top Cities’ was Glasgow, followed by Bristol and Birmingham, but London sales were down by eight per cent in the latest period, and the capital was bottom in the survey over the whole six-month period.
Capital lags behind main cities
London was hit harder by the pandemic, with a slower return of office workers than elsewhere in the country, and the normally vibrant tourist trade badly hit.
However, the survey did show signs that sales in the capital are now approaching pre-COVID levels.
To build on the growth and mitigate the downturn in the capital, businesses could look at areas like:
- Taking advantage of temporary pavement licences, set to become permanent, to attract customers in the summer
- Covering outdoor venues, with entertainment like TVs or live music, and dedicated staff to look after customers
- Offering summer giveaways, which don’t need to be hugely expensive
- Promoting what you do online, even with a guide video of the venue.
Commenting on the survey, CGA client director Chris Jeffrey said:
“Britain’s cities were badly hit by two years of COVID restrictions, but this research shows how hospitality can help revitalise them. While so much retail activity moves online, restaurants, pubs and bars are giving people reasons to visit cities, and keeping their central areas vibrant.”
For help and advice on hospitality matters, please give us a call today.
Our BLOG
Welcome news for thousands as Income Tax reporting threshold set to increase
TESTIMONIALS
The staff at CST are always very friendly and approachable.… Read more “Mr JD Dolling, SW Heating Equipment Ltd”
We have been with CST for more than seven years… Read more “Doris Francis, Engineering Services (Bridgend) Ltd”
Our business has been handled by CST for many, many… Read more “Mr & Mrs Rise”
I moved my business to Clay Shaw Thomas because I… Read more “Sandra Wilkinson of Sage Marketing”
The audit was well planned and executed efficiently, with minimum… Read more “GE Carpentry”
Privately and within the company Clay Shaw Thomas provides a… Read more “Seashore Enterprises”
I am very happy with the service from CST. An… Read more “Mr Atkinson “
The family connection with CST goes back many years and… Read more “Dr Jones”
CST are very efficient, courteous and proactive when dealing with… Read more “Mr CMG Adams”
I have been a client for over twenty years and… Read more “Mr J T Wall”
Always one step ahead of the game, CST have helped… Read more “Mr RT Evans”
CST Staff always give unbiased advice in a clear and… Read more “Mr L Branfield”
It has been a professional pleasure working with CST, they… Read more “Mr P Jenkins”
SUBSCRIBE to our list
If you would like to see full details of our data practices please visit our Privacy Policy and if you have any questions please email tellmemore@clayshawthomas.com.