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.”

A Strong Month for Hospitality Sales

A Strong Month for Hospitality Sales

Following a strong September for hospitality, October’s monthly like-for-likes are up 13.5% when compared to October 2019. 

In particular, food-led sales performed well with a 17.8% increase in like-for-likes. Drink sales were also up by 9%—much higher than September’s drink like-for-likes. 

Non-London based sites saw their like-for-likes rise by a high 15.5%. As for London sites, their like-for-likes were up too; however by a smaller 3.5%. 

S4labour’s Chief Product Officer, Richard Hartley, stated: “October’s high like-for-likes is excellent news for the sector, especially given the amount of head winds (such as the increase in VAT and supply problems) that operators are facing. The Autumn Budget also spelled some good news for the sector in the years ahead.”

Hospitality Like-for-Likes for September Are Up

Hospitality Like-for-Likes for September Are Up

After five consecutive weeks of positive like-for-likes, September 2021 has seen total hospitality sales increase by 8% when compared to September 2019. 

This was driven by food like-for-likes increasing by 16%; a common pattern throughout the past two months. Drink like-for-likes were up too, however by a much smaller 1%. 

Non-London sites had a stronger month compared to London sites, with non-London’s like-for-likes rising by 10% against London’s 3% decline. 

S4labour’s Chief Innovation Officer, Richard Hartley, stated: “After 5 weeks of sustained positive like-for-likes, September has been a reasonably positive month for hospitality. These figures do cap off the month reassuringly, however, the increase in VAT — and issues with the labour and supply chain — pose some concern for October.”

Another Positive Week for Hospitality As Like-for-Likes Are Up for a Fifth Consecutive Week

Another Positive Week for Hospitality As Like-for-Likes Are Up for a Fifth Consecutive Week

S4labour’s weekly sales figures analysis has identified that like-for-likes are up for the fifth week in a row by 11.5%; when compared to the same week in 2019. 

The like-for-like growth is mainly due to non-London sites experiencing a 15.5% increase in like-for-like sales last week. London sites, however, saw their like-for-likes fall 3.5%. 

In light of this sustained growth, Richard Hartley — S4labour’s Chief Innovation Officer — commented: “Yet again, the fact hospitality like-for-likes are up as we reach the end of September is reassuring. However, the recent petrol supply & demand issue affecting HGV drivers may impact the hospitality sector.”