Eating-out sector catches a cold as Britain's big freeze puts off diners

JANUARY'S severe weather took its toll on Britain's eating and drinking out market, according to new figures which show leading pub and restaurant groups collectively saw like-for-like sales dip 5 per cent against the same month last year, as people stayed home rather than brave the snow.

The figures come from the monthly Coffer Peach Business Tracker, which monitors performance across the UK eating- and drinking-out sector. Total sales were down 3.2 per cent on January 2009.

"With so many city centres feeling more like ghost towns it is perhaps surprising that the figures weren't worse," said

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Peter Martin of Peach Factory, which produces the Business Tracker. "It proves once again the major effect that bad weather can have on this sector."

The disappointing January results come on the back of a strong December, which saw like-for-like sales ahead 2.9 per cent on December 2008.

They also follow nine consecutive months of collective positive like-for-likes for the 15 companies making up the Business Tracker group, which include leading managed pub chains Mitchells & Butlers, Whitbread and Punch Pub Co and leading casual dining restaurant groups Gondola, Pizza Hut and Tragus.

January sales were 35 per cent below those of December – a comparison made worse by the fact that December was also a five-week month.

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David Coffer, chairman of the Coffer Group, said: "The extreme weather conditions changed consumer patterns and downgraded turnover across the board in January, a month traditionally lacklustre in the trading calendar.

"The real effect of the discounting deals that the industry has seen in the last 18 months will surely come to surface soon and it will be interesting to see the impact it will have on the bottom line. The test of recovery will be in the next quarter's results."

Chris Stott, of research sponsor KPMG, said: "This year's freak winter weather made January trading for the pub and restaurant sector even tougher than usual.

"This is the first negative month of like-for-like sales since last spring and the largest decrease in month-on month sales since the Tracker was launched.

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"However, January 2010 aside, considering the severity of the downturn over the past 12 months the leading pub and restaurant groups have proven to be very resilient in the circumstances.

"Key to this success has remained understanding what customers want in these times and providing a great experience and good value. If you can get this right, the tracker shows that despite economic difficulties, people will still eat out."

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