Bleak May Dampens Hospitality Sales as Bank Holiday Boost Fails and Costs Surge

Bleak May Dampens Hospitality Sales as Bank Holiday Boost Fails and Costs Surge

Britain’s Hospitality Scene: A Week‑High, A Snow‑Low

Picture this: the UK’s top managed hospitality groups closed May with sales that dipped 1.0 % year‑on‑year, according to the newest CGA RSM Hospitality Business Tracker. It’s the kind of headline that makes you wonder if the rain is making people stay in or if the venues are just being a little shy.

Bigger Picture: April’s Sunshine vs May’s Showers

  • April’s Warm Win: A solid 4.2 % lift, thanks to bright skies and sunny smiles.
  • May’s Misty Melt: Cooler temperatures plus a drizzle that knocked two long Bank Holiday weekends out of the usual “drink‑and‑clink” rhythm.
  • Negative Trend: This rainy dip isn’t an isolated blip – sales have been negative for three of the first five months of 2025.

What the Tracker Is Saying

  • Pubs Are Still the Party Animals: They lead the pack for a sixth straight month, posting a 0.5 % upside over May 2024.
  • Restaurants Are Slipping: Down by 2.5 %, as if the menu took a vacation.
  • Bars Took a 5.1 % Downturn: And the on‑the‑go segment – think takeaway happy hour – fell 2.5 % too.
  • Outside the M25: Slightly stronger than London’s 2.3 % slump (just a 0.4 % behind).

All‑In‑All: A Small Gain Against the Year

When you combine every channel, including fresh venues opened in the past 12 months, May’s total sales were still 1.6 % ahead of May 2024. Not bad, right? Not quite, because that’s still below the UK’s recent inflation rate measured by the Consumer Prices Index.

Industry Voices: Edgy Yet Optimistic

Karl Chessell – hospitality director at CGA by NIQ – says, “May’s Tracker numbers continue the trend for pub operators: a decent 2025. Restaurants and bars? Tough times.

“The staff cost hike in April, coupled with the Chancellor’s spending review, has left hospitality under a weighty financial regime. We’re hoping better weather will loosen consumer spending during the crucial summer months, but the climate is still a stormy one.”

Saxon Moseley – head of leisure and hospitality at RSM UK – adds, “Fragile consumer confidence keeps sinking the industry. Another month of negative sales eliminates a lot of the optimism from April.

“Cost pressures are not easing, creating a precarious situation for some operators. Consequently, we’re seeing a movement toward international expansion where conditions are gentler. If these challenges persist through summer, domestic investment could stall, leaving the UK high street in a long‑term slump.”

Bottom Line

May’s hospitality numbers show a mixed bag: pubs holding their ground, bars and restaurants faltering, and an overall slight rise that’s still struggling to keep up with inflation. The season ahead carries a bit of hope—better weather could unlock the doors of consumer spending—but the forecast isn’t exactly sunny.