Sales flat in January as wet weather dampens demand

Sales across managed restaurants remained flat in January as diners reined in spending.

 

After like-for-like sales at 117 groups including Azzurri Group, Five Guys, Mitchells & Butlers and Rick Stein Restaurants, rose 2.9% in December, wet weather and dry January dampened demand last month, with sales down 0.1%.

 

According to the NIQ RSM Hospitality Business Tracker pub groups achieved like-for-like sales growth of 0.4% in the first month of 2026. They were marginally ahead of managed restaurant operators, where sales edged up 0.3%.

 

Sales at bars fell 4.9% behind the levels of January 2025, while the on-the-go segment dropped 3.2%.

 

On a total sales basis across all businesses growth was 3.1%, in line with recent rates of inflation.

 

Karl Chessell, director - hospitality operators and food, EMEA at NIQ, said: “January is always a tough month for hospitality, and many venues struggled for footfall as the post-Christmas pinch and rain kept many people at home.

 

“New openings and higher prices mean hospitality growth is just about keeping up with inflation, and businesses will be hoping that these latest figures represent a temporary pause on spending rather than the shape of things to come in 2026. However, with so many pressures on both sales and costs, it is likely to be another challenging year for the sector.”

 

Saxon Moseley, head of leisure and hospitality at RSM UK, said: “The new year brought little respite for operators as the industry reported flat like-for-like results as low consumer confidence persisted into 2026, which was exacerbated by wet weather.

 

“With looming increases in business rates and national minimum wage, coupled with significant compliance costs associated with the new Employment Rights Act, the industry is in desperate need of growth.”