Food sales up, liquor sales plummet

Food sales at restaurants were slightly higher in February than last year, while liquor sales at bars plummeted.

Sales figures for restaurants, fast food outlets and caterers were up 3.9% to R2.1-billion in February 2009, compared with the same month last year.

Income from bar sales across the country fell 20.1% to R210.6-million, bringing overall growth in the sector down to 1.2% for the month.

In the first quarter, food sales increased by 10.8%, compared with 2008 figures for the same period. Bar sales fell 14.9%.

Syd Vianello, a retail analyst for Nedcor Securities, said beer sales at SA Breweries fell 10% for the first quarter.

“This 20% decrease [in income from bar sales] is realistic,” he said. “There was also a price increase for alcohol products in February, which people didn't take too kindly to.

“The growth in food sales was a function of falling interest rates giving people more money in their pockets to spend,” Vianello said.

Richard Downing, chief economist at the SA Chamber of Commerce and Industry, said: “Fast food will pick up as consumers move from luxury restaurants to cheaper takeaway-type food.

"I expect that bars will remain under pressure with a possible change in direction when the soccer tournaments [Confederations Cup and World Cup] begin.”

Jaco Kleynhans, a spokesperson for the union Solidarity, disputed Stats SA's findings.

He said: “We're not sure about the correctness of these statistics. South Africa has had one of the highest food inflation levels across the world.

“While input costs in South Africa have been steadily decreasing, food price increases have consistently remained way above those of similar countries.

“Many restaurants have already closed down over the past year,” Kleynhans said. “People have less money for luxury spending like going out to eat.”

Source: Business Times

Published courtesy of