Managed operators across pub, bar and restaurant groups faced a 0.1% fall in like-for-like (lfl) sales during January after a spending bonanza in December when lfl sales rose by 2.9%.
The findings, which came from the latest NIQ RSM Hospitality Business Tracker, also showed the possibility that trade has been hit by prolonged wet weather and the traditional downturn in people celebrating during the first month of the year.
However, the tracker did reveal pub groups achieved marginal like-for-like sales growth of 0.4% in the first month of 2026, which was marginally ahead of managed restaurant groups where sales climbed 0.3%.
Statistically, pubs have outperformed restaurants every month since the start of 2025. Bar groups sustained another heavy loss as sales slipped 4.9% behind the figures of January 2025.
London fared worse
Total sales, including sites opened by hospitality groups within the past 12 months, rose by 3.1%, which the tracker stated was in line with the rate of inflation in recent months but pointed out increases in the labour costs and other expenses has resulted in profit margins for operators remaining squeezed in recent times.
Despite London often benefiting, January 2026 was a slightly better month for groups outside the capital with lfl sales up 0.1% while London the same metric for London saw a fall of 0.4%.
NIQ director of hospitality operators and food EMEA Karl Chessell 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 these latest figures represent a temporary pause on spending rather than the shape of things to come in 2026.
Little respite
“However, with so many pressures on both sales and costs, it is likely to be another challenging year for the sector.”
RSM UK head of leisure and hospitality Saxon Moseley added: “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.
“Recent efforts to stimulate demand through discounting might help in the short term but, with margins squeezed, a more sustainable recovery will be required to avoid further losses on the high street.”
