Hospitality Firms Post 1.4% Growth in February Despite Rising Spending Pressures

Britain’s Hospitality Powerhouses Clock a Tiny 1.4% Sales Rise in February

Hold onto your chef’s hat—things are moving pretty slowly in the food & drink arena. The latest CGA RSM Hospitality Business Tracker tells us that big names like the InterContinental and Premier Inn saw their same‑day revenues creep up by only 1.4% month‑on‑month.

Why the Pace is So Sly

After a jittery 0.1% bump in January (the “Christmas boom” has still got its shadows), the industry is stuck in a chill zone. Consumer confidence is patchwork, the cost of living is climbing, and the political climate feels as shaky as a perfectly‑sliced cake that’s just hit the table.

Segment Highlights

Restaurants shine slightly brighter, posting 2.2% growth.
Pubs stay close behind with 2.1%.
Bars feel the crunch—sales dropped 7.4% as people ditch the late‑night “sip‑and‑smile” for earlier, more budget‑friendly outings.
On‑the‑Go remains 0.5% shy of last year’s figures.

London’s Advantage

In the M25 bubble, operators beat last year by 1.9%, compared to 1.3% outside the city. The city’s restaurants, pubs, bars, and grab‑and‑go spots are clearly on a slightly higher table.

Voices from the Frontline

Karl Chessell (CGA by NIQ) says:

“Consumers are keeping a tight grip on their wallets. Companies are feeling the heat from rising costs—both inside and on the floor. The short‑term outlook is murky, but the underlying desire to eat out remains strong. If inflation eases and the new Budget cuts National Insurance, we can chip in a hopeful sigh that people will loosen their purse strings in spring and summer.”

Paul Newman (RSM UK) adds:

“Bad weather and thinner budgets put a dampener on Valentine’s celebrations, slowing the year’s start. February’s sales underline the rough patch for hospitality—wage bills, rent, and rates are all eating up the margin cake. While the Spring Budget is a modest crumb, the next few months will test many big and small operators alike.”