Christmas 2024 Hospitality Sales: Trends and Insights

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Explore the festive trading landscape of 2024 versus 2023, highlighting growth in bars and shifting consumer behaviors.

Introduction

The festive season has always been a pivotal time for the UK’s hospitality industry, serving as a crucial period for pubs, bars, and restaurants to enhance their sales amidst economic pressures. As we compare Christmas trading between 2023 and 2024, it becomes clear that while the sector is experiencing uneven growth, there are still opportunities for operators to thrive during this bustling time of year.

Year-on-Year Performance: 2024 vs. 2023

In the week starting December 16, 2024, hospitality sales showed a modest year-on-year increase of 2.7%. This is significantly less dramatic than the previous year’s performance but remains a positive indicator given the challenging market conditions. According to CGA by NIQ in partnership with RSM UK, managed bars were the clear winners in this period, reporting an impressive 20.5% growth. This surge was largely fueled by factors such as Christmas parties and late-night sporting events.

In contrast, other segments had more restrained growth figures. Food-led operations saw increases of 3.4% in on-the-go services and 2.1% in restaurant sales. Pubs struggled to keep pace with only a 0.7% increase, indicating a potential shift in consumer preferences away from traditional pub experiences.

The Festive Lift of 2023

The year 2023 showcased a much stronger festive uplift across the hospitality sector. Drinks sales at pubs and bars soared by 7% compared to 2022 during the final fortnight leading up to Christmas. Beer and cider were particularly strong performers, each seeing around 12% growth year-on-year.

Notably, December 23 emerged as an exceptional day with sales jumping 21%, while Christmas Day itself recorded a remarkable 10% increase over the previous year’s figures. However, spirits did not share equally in this success; they experienced mixed results—up by 3% before Christmas but down by 11% post-holiday.

Consumer Behavior Dynamics

Examining consumer behavior reveals contrasting trends between the two years. The festive period of 2023 benefited from widespread growth across all beverage categories: beer, cider, and wine all performed exceptionally well together. Conversely, data from 2024 shows that growth was concentrated primarily within bars; this suggests that these venues successfully attracted consumers through event-driven experiences while other sectors faced lower demand.

The spirits category’s ongoing challenges reflect changing consumer preferences—indicating some patrons are opting for lighter options during quieter periods rather than stronger beverages.

Looking Ahead: The New Year Outlook

Both years underscore the significance of the holiday season for boosting hospitality sales; however, each context varies greatly. The strong finish of 2023 created cautious optimism amid looming challenges such as Dry January and broader economic uncertainties.

While parts of pre-Christmas performance in 2024 appear promising, operators must prepare for what is likely to be a tough start to the new year ahead. As we transition into early 2025, it will be essential for businesses within hospitality to adapt to evolving consumer behaviors and capitalize on key trading moments throughout the year.

Conclusion

The resilience demonstrated over consecutive Christmas seasons highlights how vital shared celebrations remain within pubs and bars even during difficult times. By understanding current trends and responding effectively to shifting consumer demands, operators can continue navigating an unpredictable landscape.

Photo by Austin Distel on Unsplash