March Trading Improves For UK Pubs, Restaurants On Warm Weather -Study
April 17 2012 - 9:49AM
Dow Jones News
Trading for pubs and restaurants across the U.K. improved during
March largely due to the unseasonably warm weather, according to a
study released Tuesday, although the outlook remains subdued.
The Coffer Peach Business Tracker reported that comparable sales
in March rose 1.9%, following falls of 2.1% and 3.7% in January and
February respectively--traditionally weak trading months.
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).
Total sales, which include new openings, rose 6.3%.
Analyst Peter Martin of Peach Factory, a market intelligence
group that produces the report in partnership with KPMG, UBS AG
(UBS) and investment advisory service The Coffer Group, said the
figures reflect favorable weather conditions.
"The good weather will certainly have helped trading,
particularly in the pub market, which performed more strongly than
high-street restaurants," he said.
Still, Martin cautioned trading remains relatively subdued as
economic weakness, below-inflation pay rises and unemployment crimp
consumer spending in the country.
"March's figures essentially put the sector back on an even
keel. The informal eating and drinking-out market has remained
fairly stable over the past two years in terms of like-for-like
growth, and we continue to predict another essentially flat trading
year," Martin added.
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