April Trading For UK Pubs, Restaurants, Worsens On Wet Weather -Study
17 May 2012 - 10:48PM
Dow Jones News
Trading for pubs and restaurants across the U.K. worsened in
April largely due to cold and wet weather amid an uncertain
economic outlook, a study released Thursday showed, although
analysts expect a pickup in May and June.
The Coffer Peach Business Tracker reported that comparable sales
in April fell 2% on the year, following a rise of 1.9% in March.
Total sales, which include new openings, rose 1.9%.
The tracker monitors trends in the eating and drinking-out
market by collecting monthly performance data from 24 companies,
including Whitbread PLC (WTB.LN), Mitchells & Butlers PLC
(MAB.LN), Spirit Pub Co. PLC (SPRT.LN) and Marston's PLC
(MARS.LN).
Pubs, and in particular drink-led businesses, were worst hit,
although high-street casual dining restaurants saw sales increase,
it said.
"As ever, the weather is a major factor in where, or whether,
people choose to go out and eat. In general, if it's sunny people
go to the pub; when it's wet restaurants tend to benefit," said
analyst Peter Martin of Peach Factory, a market intelligence group
that produces the report in partnership with UBS AG (UBS) and
investment advisory service The Coffer Group.
Martin also said the same period a year ago provides a tough
comparison.
"Last April, not only did we have hotter weather, but we had the
Royal Wedding and Mother's Day in the month, as well as the Easter
holidays."
Martin said the market remains "volatile," with the uplift in
March preceded by falling comparable sales in January and
February.
Economists and businesses are concerned that economic weakness,
below-inflation pay rises and unemployment are crimping consumer
spending.
Still, analysts hope for a rebound in May on more favorable
comparisons and in June thanks to trading benefits from the Queen's
Jubilee bank holiday and the European soccer championships.
Jonathan Leinster, European leisure research analyst at UBS,
said: "We believe consumers are still happy to allocate
discretionary spend to eating and drinking out, and pub-restaurants
and other low-cost food options are growing share within that
market."
-By Simon Zekaria, Dow Jones Newswires; +44 207 842-9410;
simon.zekaria@dowjones.com