The latest edition of the CGA RSM Hospitality Business Tracker, based on sales figures from 113 managed groups, revealed restaurant, pub and bar groups saw a 3.2% uptick in like-for-like sales in December.
It marked the tracker’s highest point since May last year, finishing just above Britain’s 2.5% headline rate of inflation.
Moreover, the data, produced by CGA by NIQ in partnership with RSM UK, showed total sales growth in December had been notably higher at 5.2%.
It reflected a “steady stream” of new managed restaurant, pub and bar openings during the last 12 months, CGA said.
However, the growth was “unlikely” to increase confidence within the sector UKHospitality (UKH) chief executive Kate Nicholls said.
“December is the most important month of trading for most hospitality businesses, and was even more critical in 2024 as the sector faces £3.4 billion in added cost in April.
“Real-terms sales growth as a whole is encouraging but with performance varying quite significantly across the sector, it is unlikely to be enough to increase business confidence heading into a challenging year”, she continued.
Among major hospitality channels, pubs enjoyed the best December as consumers celebrated the run-up to Christmas and New Year’s Eve with friends and families, finishing the month 4.7% ahead of December 202.
Meanwhile restaurants’ growth was more muted at 1.6%. Elsewhere, bars bounced back from soft trading throughout most of 2024 to post growth of 1.3%. The on-the-go segment of the market dropped 1.2%.
CGA by NIQ director hospitality operators and food EMEA Karl Chessell said: “After a modest performance through most of 2024, real-terms growth in December was a big relief for the hospitality sector.
“The late festive sales show people remain eager to celebrate special occasions in pubs, bars and restaurants, and provide a welcome buffer for the much quieter months of the year.
“However, with the costs of doing business sure to rise further and consumers’ confidence still patchy, 2025 is likely to be another challenging year for many hospitality businesses.”
December trading in London comfortably outpaced the rest of the country, the tracker shows, with managed groups’ sales inside the M25 up by 4.6% year-on-year, while venues further afield rose 2.8%.
RSM UK head of leisure and hospitality Saxon Moseley added: “December’s results cap off a lacklustre year for the hospitality industry, with average like-for-like revenues tracking below inflation for most of 2024 despite an encouraging festive trading period.
“This recent uptick in trade alongside a forecast improvement in consumer confidence should give operators hope that 2025 will be a stronger year.
“However, given the significant tax rises and regulatory burdens that will impact the sector this year, and with little capacity to absorb these additional costs, businesses will need to tread a fine line between raising prices to preserve margins whilst not spooking consumers.”
