May’s Hospitality Sales Take a Bit of a Tumble
According to the latest CGA RSM Hospitality Business Tracker, Britain’s top managed hospitality groups saw sales dip by 1.0 % year‑on‑year in May. After a sunny, growth‑stoking April, the cooler and wetter temperatures in many parts of the country turned the tide.
Why the Chill Even Felt as a Chill‑Pocalypse
- The rainy, overcast weather banged on the shoulder of the two long Bank Holiday weekends that usually fire up out‑of‑home sales.
- For three of the first five months of 2025, the Tracker reports negative sales growth.
Channel‑by‑Channel Breakdown
- Pubs – the star of the show. They outpaced other channels for the sixteenth month running, up 0.5 % year‑on‑year.
- Restaurants – not so lucky. Down 2.5 % in May.
- Bars – experienced a 5.1 % drop.
- On‑the‑go – also fell 2.5 %.
Geography Smack‑downs
Outside the M25 the market kept a slightly stronger footing than London. Groups in the M25 saw a 2.3 % decline, while those elsewhere were only 0.4 % behind.
Overall, May total sales across all channels – including venues opened in the last 12 months – were 1.6 % ahead of May 2024. Still, that pace lagged behind the 2.5 % inflation reflected in the UK Consumer Prices Index.
Industry Voices: A Sip of Optimism and a Shot of Reality
Karl Chessell, director – hospitality operators and food, EMEA at CGA by NIQ, summed it up: “A reasonable 2025 for pub operators, but a tough one for restaurants and bars. The rising staff costs and the Chancellor’s spending review have left hospitality businesses humming along with a heavy burden. They’re hoping for sunnier weather to loosen spend in the risky summer months, but the trading environment looks pretty grim for the foreseeable future.”
Saxon Moseley, head of leisure and hospitality at RSM UK, added: “Fragile consumer confidence still weighs hard on the industry, undoing the optimism from April. The situation’s creeping toward desperation for some. With sluggish spending and high costs, operators are eyeing international markets that look friendlier. If the summer doesn’t ease the challenges, this could bring less domestic investment and a long‑term plateau for the UK high street.”
Takeaway: Keep Your Glass Full (Even if the Weather’s Not)
It’s a rollercoaster ride for hospitality. Pubs bucked the trend, but bars, restaurants, and the mobile sector lag behind. While the year‑on‑year growth in May is up, it still drops below inflation, meaning the industry’s caught in a squeeze. The only bright spot? Pubs are showing resilience, giving them a fighting chance if they rally their teams and keep the drink flowing even when the sky opts for gloom.
