Hospitality industry loses 94% of sales over lockdown

Hospitality industry loses 94% of sales over lockdown

by | 30 Nov, 2020 | Blog, COVID-19 News, Press & News, Sales Figures

Hospitality industry loses 94% of sales over lockdown

Analysis from S4labour shows that through lockdown 2.0, hospitality sales in sites that were trading in England were 80% down on pre lockdown levels and 96.5% down year on year. It should be noted that on top of these figures, 32% of sites did not trade at all, so the actual cost to hospitality during the lockdown was 94% of revenue.

Takeaway sales were low during lockdown, indicating that for most sites it was not feasible or profitable to pivot business models.

Sales figures from the few days before lockdown indicate that consumer confidence in hospitality is high, and pent up demand will mean that the few days coming out of lockdown are likely to be busy.

Alastair Scott, Managing Director at Malvern Inns commented: “Most operators do not have the infrastructure or the business models to run takeaway sales at a profit and the government cannot expect the industry to rely on such sales for survival. As lockdown-esque restrictions linger further into December, it is not looking promising for an industry that relies on Christmas trading to get through the next year.”

Lockdown 2

Lockdown 2

by | 12 Nov, 2020 | Blog, COVID-19 News, Sales Figures

Take-away sales during lockdown 2

Analysis from S4labour shows that just 25% of sites have stayed open after lockdown, with 75% closing during the first week of lockdown. There is little variation between rural and urban sites, nor between geographical regions across the U.K.

Of those sites who have remained open, sales are on average 24% of pre-lockdown for the first week of trading, with food being 27% and drink being 23%, which shows a significant adjustment of the industry to the new environment. A glance at site specific data shows that venues offering pizza and other more typically take-away food are vastly up on other sites.

Alastair Scott, CEO of S4labour and Managing Director of Malvern Inns commented: “I am really impressed with how fast operators have adjusted their business to cope with the new environment, particularly as the rules were changing right up to the last minute.

At Malvern inns we are using this time to build things for the future that we may want to maintain as part of our new long term operations. This includes a takeaway offer; an off-licence and a village shop, as well as getting ahead and preparing for Christmas and even valentines day. But if we break-even during the lockdown we will be over the moon.”

 

 

 

Hospitality Sales Figures Press Release from S4labour

Hospitality Sales Figures Press Release from S4labour

by | 15 Sep, 2020 | Sales Figures

Weekly hospitality sales down 9% on last year but remain 10.4% on pre EOTHO levels.
 
Analysis from S4labour shows that in the first full week without any government support, hospitality like for like sales were down 9.0% on the same week last year, albeit 10.4% up on the last week of July.
 
Despite the overall slip in like for likes, food sales continue to be in growth, up 4%. This is in contrast to the 17.5% decline in drink sales comparing last week with the same week in 2019.
 
Chief Product Officer, Richard Hartley stated that the figures indicate that EOTHO has successfully generated some residual effect in driving out of home eating habits. With the U.K. in recession and the withdrawal of EOTHO, it is unsurprising to see some tailing off of sales. However, with operators standing on their own two feet, it is highly encouraging to see that food sales are still in growth.

Notes to Editors:
To interview Richard Hartley, S4labour, please contact Matt Sweetman, Digital Marketing manager, on 01295 267400 or matt@s4labour.co.uk.
S4labour are a leading provider of labour management software and an award-winning independent consultancy firm.  Go to www.staging.s4labour.co.uk for more information.

Weekly hospitality sales up 19.9% on pre EOTHO levels.

Weekly hospitality sales up 19.9% on pre EOTHO levels.

by | 8 Sep, 2020 | Press & News, Sales Figures

Weekly hospitality sales up 19.9% on pre EOTHO levels.

Analysis from S4labour shows that last weeks hospitality sales were up 19.9% on pre EOTHO levels. However, as the Eat Out to Help Out scheme came to an end, children returning to school and many going back to work, hospitality sales tailed off with a 12.8% week on week decline.

London bore a less severe week on week dip than the rest of the country, down 9.4%, but up 26.4% compared to the week before the EOTHO scheme launched. Outside the capital, week on week sales were down 13.4%, but up 18.8% compared to the week before EOTHO.

Over the last month, there has been a significant difference between the like for likes performance of food compared to drink, with food sales growing more dramatically in the wake of the EOTHO support. However last week, with EOTHO not available for the majority of the week, there was for the first time since July, a relatively modest difference, with drink sales slipping 11.5% and food sales down 14.0% on the previous week.

Sam Wignell, Chief Customer Officer at S4labour commented, last week was interesting because we had one day of EOTHO and a bank holiday Monday. This week will be the first full week without the government backed discount and so give a much clearer indicator of the health of the sector. While week on week sales were down, it is highly encouraging to see operators are still trading well above where they were a 6 weeks ago. On the whole, these set of figures point to a healthy level of public confidence albeit with a hard road of recovery ahead.

Hospitality Like For Likes bounce back in August

Hospitality Like For Likes bounce back in August

by | 4 Sep, 2020 | Sales Figures

Analysis from S4labour shows that hospitality like for like sales in August were flat, down just 0.4% compared to the same month last year. The Eat Out To Help Out scheme had the desired effect with those sites that were trading showing like for like growth in food sales of 22.2%, while drinks sales were in decline of 16.2%. The offer of a government supported meal helped to increase consumer confidence and has provided the lifeline that hospitality required. In July we saw like for likes down 30% and at this level many hospitality businesses would have been making a loss.
 
Outside of London performed better than London, with 4% growth compared to 19.5% decline. This is a reflection of the impact of people still working from home and it is likely that all urban areas that rely on a population of people working in nearby offices will be suffering. We are starting to see more organisations bring people back to their offices but this will take time and is unlikely to return to pre-pandemic levels.
 
Richard Hartley commented “EOTHO clearly did a job in restoring consumer confidence. There were some great sales and this suggests that the message has got through to consumers that the hospitality sector is very much open and very much safe”

Hospitality Like For Likes bounce back in August

Hospitality Like For Likes bounce back in August

by | 1 Sep, 2020 | Sales Figures

Analysis from S4labour shows that hospitality like for like sales in August were flat, down just 0.4% compared to the same month last year. The Eat Out To Help Out scheme had the desired effect with those sites that were trading showing like for like growth in food sales of 22.2%, while drinks sales were in decline of 16.2%. The offer of a government supported meal helped to increase consumer confidence and has provided the lifeline that hospitality required. In July we saw like for likes down 30% and at this level many hospitality businesses would have been making a loss.

Outside of London performed better than London, with 4% growth compared to 19.5% decline. This is a reflection of the impact of people still working from home and it is likely that all urban areas that rely on a population of people working in nearby offices will be suffering. We are starting to see more organisations bring people back to their offices but this will take time and is unlikely to return to pre-pandemic levels.

Richard Hartley commented “EOTHO clearly did a job in restoring consumer confidence. There were some great sales and this suggests that the message has got through to consumers that the hospitality sector is very much open and very much safe”