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Home Business News Eat Out Help Out scheme sees sales drop for second week

Eat Out Help Out scheme sees sales drop for second week

by Mark Fitt Political Journalist
17th Aug 20 2:02 pm

According to research by hospitality software business Fourth, restaurants and pubs have seen a slight drop-off in sales during the second week of the Eat Out Help Out scheme.

Chancellor Rishi Sunak’s scheme saw, between Monday 10 August and Wednesday 12 August sales collectively fell by 13%, compared to the same period a week earlier.

The research showed that the “quick-service restaurants” saw sales fall by 30% in the second week, whilst other restaurants sales fell by 6%.

The previous week pubs and bars sales were down by 20% compared to the previous week. Sales were significantly higher than trading prior to the scheme started, as sales were up by 30% across all three areas, against the period two weeks earlier.

The majority of companies that are on the scheme reported sales figures inclusive of the discount initiative, therefore understating their total revenues.

Fourth analysed more than 700 firms across the sector which revealed sales between Monday 3 August and Wednesday 5 August were up by 50%. This highlights a strong start to the Eat Out Help Out scheme.

Pubs and quick service restaurants saw sales increase by 26% and 22% respectively, whilst restaurant sales increased by 70%, the research showed.

Staffing levels were boosted to meet demand which saw a 4% increase in hours worked, compared to the previous week.

Previously there were concerns that the scheme which operates between Monday and Wednesday could impact other trading days. However, during the second week initial data compiled by Fourth does not “indicate a drop-off in trade between Thursday and Sunday.”

Sebastien Sepierre, managing director for Europe, Middle East and Africa at Fourth said, “With uncertainty around consumer demand in the first week of the initiative, and some employees still furloughed, operators were understandably cautious with managing their staffing levels.

“However, following the positive spike in trading during the first week, there has been an increase in the number of hours scheduled in the industry, which in turn will have a positive impact on the overall customer experience, which is crucial to ensuring the initiative generates a sustained positive impact for the industry.”

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