Data from The Oxford Partnership has revealed that pubs and bars saw spend fall 1% versus June 2024 and -3.5% month-on-month.
Restaurant spend was marginally up year-on-year at 0.9% but still slipped 1.7% compared to May.
The data showed that overall, drinks and food spend growth (at 1.2% and 1.1% respectively) trailed CPIH (Consumer Price Index including owner occupiers’ housing costs) inflation of 4%, adding margin pressure for operators already facing rising costs.
These latest statistics reflect other data in the market, which has shown a worrying trend on consumer spending for the month.
The latest Barclaycard Consumer Spend report, which combines millions of customer transactions with consumer research, concluded spending was muted for the month of June.
While CGA by NIQ’s latest Daily Drinks Tracker showed drinks sales overall dipped in the month.
Mixed picture
The Oxford Partnership’s June Market Watch Snapshot also revealed a mixed picture for the UK On Trade in terms of drinks sales.
Consumers are continuing with their love of premium beers. World and Premium Lagers grew +6.7% and +5.8% respectively over 12 weeks, despite slight cooling from May.
However, core Lager (-6.1%) and Craft Beer (-4.6%) continued to struggle, while Cider stood out with +7.6% growth across regions. No and low alcohol beers rebounded, up +3.1% in the latest four weeks, supported by moderation trends, the snapshot concluded.
While overall volumes declined year-on-year in comparison to last summer’s Euro 2024 spike and despite warm weather, Cardiff delivered a striking success story thanks to the Oasis impact, which saw a significant uplift for local trade.
“The Euros delivered huge sales for the sector last year but it’s not just sport that packs a punch,” said Alison Jordan, CEO of The Oxford Partnership.
“We saw the ‘Swift Effect’ in full force last summer and now Cardiff’s felt its own ‘Supersonic Surge’. Oasis didn’t just bring the music; they delivered a full cultural moment that lit up the city and sent tills ringing. From packed pubs to soaring pint sales, it’s a powerful reminder that major cultural events fuel hospitality in a big way, driving real economic impact and unforgettable nights out.”
Structural rationalisation
The Oxford Partnership also revealed that market dynamics continued to shift with the total number of UK hospitality outlets falling -0.7% year-to-date, “underscoring ongoing structural rationalisation in the sector.”
However, operators adapted by extending trading hours, which climbed +0.72% over the latest four weeks, one of the sharpest increases this year, demonstrating strategies to capture more spend, it claimed.
Consumer usage trends also levelled slightly. While dwell time and occupancy continued to grow, their rates of increase softened in June. Dwell time remained up +13% over the past 12 weeks, while occupancy was up +4%, indicating customers continue to make visits count even if overall frequency isn’t rising.
“Operators are working hard to adapt to these pressures and shifting behaviours,” added Jordan.
“This month’s snapshot shows both the challenges and the real opportunities that lie in driving quality experiences and supporting events that bring people together.”
