Proactive Investors - With the World Cup over and mass strikes causing mass disruption, pub sales in the City of London have taken a turn for the worse.
According to Kate Nicholls, chief executive of trade group UKHospitality, takings in the past week were nearly half of pre-pandemic levels, and with rail strikes planned in the weeks ahead, there could be more pain to come.
Sales across the whole of London were down 37%, compounded by the fact that hospitality businesses reported an average booking cancellation rate of 30%.
Footfall in the city remains low, with data from Freespace showing that strikes are causing a sharp drop in office occupancy.
The dour news comes at a time when British pubs were showing a strong rebound in top-line revenues.
Marston’s PLC (LSE:MARS) raised a glass this month to a return to profit and a 5% increase in sales from pre-pandemic levels, while Mitchells & Butlers PLC (LSE:MAB) also noted a return to pre-pandemic sales levels.
But the energy crisis and wider inflation worries have taken a massive bite out of profit margins, and with sales now starting to dry up, there are undoubtedly tougher times to come.