A first look at the impact of the 10pm curfew on hospitality sales.

A first look at the impact of the 10pm curfew on hospitality sales.

10pm curfew drops sales by 12.9%. Analysis from S4labour shows that sales over Thursday to Sunday when comparing the week prior to the curfew with last week show a 10.9% decrease in food sales and a 14.7% decrease in drinks sales.

The impact of the latest challenge is another stark reminder of the effect that Coronavirus is having on our industry. EOTHO is becoming a distant memory and the requirement to think of news ways to drive businesses forward is evermore important. Sam Wignell, Chief Customer Officer at S4labour, commented “I have never spoken to so many customers who are having to look at new innovations to drive sales and keep their businesses compliant. It will be interesting to see how consumer behaviours change as we become accustomed to the new regulations.”

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This data only includes sites that were open for August.

Hospitality Sales Figures Press Release from S4labour

Hospitality Sales Figures Press Release from S4labour

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.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.

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

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

Impact of the Eat Out to Help Out Scheme

Eat out to help out sees sales increase by 70.9% over the first three days of the week. Sales numbers taken from S4labour have shown that the Eat Out to Help Out scheme has proved hugely successful and a welcome boost to the industry. Food sales have more than doubled with a 114.3% increase, with drink, understandably, not as high at 29.8%. Richard Hartley, Chief Product Officer, commented “It’s been a great initiative at a crucial time for the industry and we hope that this will give consumers the vital confidence we need them to have to return enjoy the great hospitality our customers provide. We have seen confidence gradually increasing since the reopening of the industry at the start of July, however this level of support is the catalyst consumers needed on the journey back to normality.”

Hospitality Like For Likes bounce back in August

Week on week like-for-like sales UP a further 13.4%

Analysis of sales from operators who were open last week showed that overall sales were up 13.4% on the previous week, with sales of food up 22.2% and drink sales growing 7.3% on the previous full weeks trading. 

The figures from this week show a continued growth of sales, building on the 21.3% week on week boost in sales from the previous week. While weekly like-for-likes continue to grow, it is worth noting that like-for-like sales are still down 24.1% when comparing last week with the same week in 2019 (an improvement on the 34.4% drop we reported on the previous weeks year on year like-for-likes.). 

London experienced a slight plateauing in its recovery, with a 1.7% week on week like-for-like increase and a drop of 28.6% year on year. Like-for-like food sales within the capital had been sluggish since lockdown measure were eased earlier this month, however, last week sales of food in London jumped a notable 17.5% on the previous week.  

Chief Product Office Richard Hartley commented that there the figures show an encouraging trend, particularly with regards to seeing that food sales are starting to turn a corner. We would expect to see sales continue to grow as consumer confidence around safety increases and government incentives such as “Eat Out to Help Out” start to gain traction.