Managed hospitality groups saw like-for-like sales rise by 0.4% last month, the latest NIQ RSM Hospitality Business Tracker showed.
Marking just the second month of growth for the sector so far this year, it means year-on-year growth has been below the UK’s rate of inflation for 13 consecutive months.
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The tracker, produced by NIQ and powered by CGA in association with RSM, said this reflected an “ongoing squeeze on consumers’ disposable incomes amid rising costs”.
However, there were some bright spots, with pubs outperforming the wider market in May, finishing the month with sales up 1.1% compared with 2025.
Higher prices
Growth for managed restaurants was slower at 0.5%, as operators continue to face inflationary pressures as well as a tighter consumer spending on eating out.
Meanwhile year-on-year sales in the bar sector slipped by 6.1% - the worst figure since early 2025.
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 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.”
Despite the challenges, some hospitality groups continued to open new sites, according to the tracker.
Much-needed boost
On a total sales basis - including at venues opened in the last 12 months - sales rose by 3.9%, slightly ahead of the recent rate of inflation.
The report further highlighted a better May for operators in London, with groups’ like-for-like sales up by 3% within the M25 and falling 0.6% beyond the M25.
RSM UK head of leisure and hospitality Saxon Moseley added: “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.
“All will be hoping the World Cup stimulates demand across the UK and gives the industry a much-needed boost ahead of the critical summer holidays.”
