After solid growth of 4.2% in a sunny April, trading last month was weakened by cooler and wetter weather in many parts of the country.
Dips in the temperatures particularly affected May’s two long Bank Holiday weekends, which usually boost out-of-home sales.
Sales through the Tracker, produced by CGA by NIQ in partnership with RSM UK, have now been negative for three of the first five months of 2025.
Though the outlook was more positive for pubs, with the sales for the segment 0.5% ahead of May 2024, while restaurants trade dropped 2.5%.
Heavy burden
Meanwhile sales in bars finished 5.1% down year-on-year, and the on-the-go segment fell 2.5%.
CGA by NIQ director - hospitality operators and food, EMEA Karl Chessell said: “May’s Tracker numbers extend the pattern of a reasonable 2025 for pub operators but a challenging one for restaurants and bars.
“They are particularly concerning in the context of major increases in staff costs from April, and the Chancellor’s recent spending review brought little to reduce the heavy burden on hospitality businesses.
“Groups will be hoping for better weather to loosen consumers’ spending in the crucial Summer months, but the trading environment is going to remain very challenging for the foreseeable future.”
Trading outside the M25 continued to be slightly stronger than in London. Groups’ sales inside the M25 in May were down by 2.3% year-on-year, but further afield they were only 0.4% behind.
May’s total sales through all channels—including at venues opened by groups in the last 12 months—were 1.6% ahead of the same month in 2024.
Cost pressures
However, this is still below the UK’s recent rate of inflation.
RSM UK head of leisure and hospitality Saxon Moseley added: “Fragile consumer confidence continues to weigh on the hospitality industry with another month of negative like-for-like sales undoing much of the positive sentiment from April’s encouraging results.
“With cost pressures showing no signs of reducing, the situation is increasingly desperate for some.
“Given this combination of sluggish discretionary spending and high costs, we are seeing a number of operators actively looking to expand internationally where trading conditions are more favourable.
“Unless these challenges ease over the summer, this could lead to less domestic investment and longer term stagnation for the UK high street.”
