May Trading For UK Pubs, Restaurants, Improves On Warm Weather - Study

By Simon Zekaria

LONDON--Trading for pubs and restaurants across the U.K. improved in May, boosted by warm weather at the end of the month, a study released Wednesday showed.

The Coffer Peach Business Tracker reported that comparable sales in May rose 2.6% on the year, following a fall of 2% in April. Total sales, which include new openings, rose 6.5%.

The tracker monitors trends in the eating and drinking-out market by collecting monthly performance data from 24 companies, including Whitbread PLC (WTB.LN), Mitchells & Butlers PLC (MAB.LN), Spirit Pub Co. PLC (SPRT.LN) and Marston's PLC (MARS.LN).

Pubs and pub restaurants were the best performers, it said.

"The hotter weather at the end of May was a help for them after a cool start," said analyst Peter Martin of Peach Factory, a market intelligence group that produces the report in partnership with UBS AG (UBS) and investment advisory service The Coffer Group.

Still, Mr. Martin cautioned high-street casual dining restaurants had a tougher month and warned overall trading across the industry remains "volatile".

Economists and businesses are concerned that economic weakness, below-inflation pay rises and unemployment are crimping consumer spending.

Still, analysts hope for a uplift in June from the Queen's Jubilee bank holiday and the European soccer championships, even as poor weather and tough comparatives weigh on trading.

The effect of the Olympic Games in London on trading for the industry is hard to gauge, analysts added.

"The jury is out as to whether it will be positive or a big turn-off for the food and beverage market," David Coffer, chairman of The Coffer Group said.

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