‘Stuck in stagnation’: Hospitality sales edge up despite regional slump

Sales across 118 of Britain’s leading hospitality groups edged up 0.4% in like-for-like terms in May – marking the 13th consecutive month that the sector had grown behind inflation.

According to the latest figures from the NIQ RSM Hospitality Business Tracker like-for-like sales for businesses within the M25 rose 3% last month, spurred by good weather in the capital. Sales outside of London fell 0.6% in like-for-like terms.

Sales rose by 3.9% in total terms during the period, spurred by a 1.1% rise in sales across pubs.

By contrast, sales across bars plunged 6.1% year-on-year to the lowest level since early 2025.

Across managed restaurants sales rose 0.5% year-on-year.

NIQ hospitality operators and food EMEA director Karl Chessell said: “Hospitality like-for-like sales have been frustratingly short of inflation for many months now, and it’s clear that any recent growth is being driven by higher prices or new openings rather than extra volume. Millions of consumers are very cautious about their spending, and bars in particular are being heavily impacted by tighter budgets and changing leisure habits.

“The football World Cup brings a great opportunity for pubs to boost footfall in June and July, and reports of more staycations should also work to the advantage of all operators. Nevertheless, hospitality remains under severe strain.”

RSM UK head of leisure and hospitality Saxon Moseley said: “May’s figures continue an unwelcome 13-month run of below-inflation growth, confirming that the sector remains stuck in stagnation. While London outperformed the rest of the UK for the second consecutive month, buoyed by a heatwave that kept pub tills ringing, the picture elsewhere is worrying.

“Strip out the capital’s figures, and the rest of the country reported negative like-for-like growth. This is a real concern for regional operators and a stark reminder that consumer spending remains incredibly uneven.”