Key Festive Dates Suffer Significant Sales Slump, following a Difficult December for Hospitality

Key Festive Dates Suffer Significant Sales Slump, following a Difficult December for Hospitality

Hospitality sales for December were down 12% compared to December 2019.

Both drink and food sales experienced declines, with sales down 11.5% and 13% respectively.

London sites’ sales were hit the hardest as like-for-likes fell by 23% on 2019 levels. Non-London sites also saw downfalls, however by a lesser figure of 10%.

As for specific dates, London’s sales dropped on all occasions on 2019 levels:

  • Christmas Eve sales down 38%, with drink-led sales down 40%
  • Christmas Day sales down 23.5%
  • Boxing Day sales down 25%
  • New Year’s Eve sales down 11.5%

Non-London sites, however, were much less affected on specific holiday occasions — Christmas Eve saw food driven like-for-likes increase by 3.5% while Christmas Day’s overall sales were down 11.5% on 2019 for sites outside of the capital.

Richard Hartley, S4labour’s Chief Innovation Officer, said: “December has been an incredibly difficult month for the sector yet again. As we enter further into the new year, it is important that no more restrictions are imposed on the sector.”

Christmas Hospitality Sales Take a Concerning Decline

Christmas Hospitality Sales Take a Concerning Decline

The Christmas period saw hospitality sales decline by 30% when compared to 2019 levels.

Sites within London experienced a 50% decrease in sales on 2019 levels, whilst sites outside of the Capital saw their like-for-likes drop by a lesser 26%.

Week-on-week sales were also negative, with sales falling by 18% compared to the previous week.

These figures are from businesses that had at least a 14-day trading period over Christmas — meaning closed sites’ sales during Christmas are excluded. If closed sites were to be included, the sales figures would reveal even larger declines.

Richard Hartley, Chief Innovation Officer at S4labour, said: “The festive period is critical for the sector, and these figures spell concern on current consumer confidence. With this, it is vital no further restrictions are put in place as many businesses are struggling to survive.”

Hospitality in London Suffers 30% Decline in Sales

Hospitality in London Suffers 30% Decline in Sales

As Christmas uncertainty begins to continue, data from S4labour shows sites within London are down 30% on last week’s sales.

The week-on-week decline was experienced by the whole sector too, however non-London sites saw their sales drop by a smaller 6.5% on the previous week.

Sector like-for-likes were also in decline, with the Capital again suffering as sales fell by 16% when comparing the same week with 2019.

Richard Hartley, Chief Product Officer for S4labour, said: “The announcement of Plan B and rumours of increased restrictions have clearly damaged consumer confidence heavily, and with Christmas fast approaching, the industry has a challenging time ahead”.

Hospitality Sales Experience Decline Amidst Plan B Announcement

Hospitality Sales Experience Decline Amidst Plan B Announcement

Following the Plan B announcement from the Prime Minister, data from S4labour shows weekly hospitality sales have dropped by 9% when compared to 2019 levels.

The like-for-like decline was felt by both London and non-London sites, with the Capital experiencing a 16% drop in sales last week on 2019 levels. Non-London sites saw a smaller 7% fall in weekly sales.

The Chief Product Officer of S4labour, Richard Hartley, commented: “Even though there is not a noticeable change in hospitality sales as a result of Plan B, the announcement will certainly not help the situation—likely affecting corporate-led venues’ sales the hardest. Speaking to customers, operators have experienced hundreds and hundreds of lost covers and cancellations. As a result, hopefully the sector sees resilient consumer behaviour as well as no further restrictions.”

Hospitality Sales Experience Slight Decline during November

Hospitality Sales Experience Slight Decline during November

November’s like-for-like hospitality sales dropped by 4% across the sector compared with 2019 levels, however food like-for-likes were positive.

Food sales were up 2% on November 2019, yet drink sales declined by 10.5%.

Both London and non-London sites also saw their like-for-likes decline last month. London was hit the hardest with a 9.5% reduction in sales, whereas non-London sites saw like-for-likes drop by a smaller 3%.

The Chief Product Officer of S4labour, Richard Hartley, commented: “The slight 4% decline in like-for-likes for the sector is not too concerning, especially given October’s strong 13.5% increase in like-for-likes. December looks to be a pivotal month, as the sector looks to sustain sales amidst the concern in recent booking cancellations.”