UK Pub & Restaurant Scene: Summer Strides & Stumbling Blocks
According to the latest CGA RSM Hospitality Business Tracker, Britain’s top pub, bar, and restaurant groups slid into a flat summer. July’s like‑for‑like sales dipped by a mere 0.1% year‑on‑year, marking a seasonal lull after flat June numbers and a 1.0% dip in May.
Segment Highlights
- Pubs outperformed the kitchen: a 0.6% rise in July, buoyed by warm weather in many regions. The Euro 2024 tournament, however, pulled people to the stadiums, keeping pub numbers from soaring.
- Restaurants managed a modest 0.2% gain—its first uptick since December 2024—hinting that diners might be regaining confidence.
- Bars looked down with a 4.3% decline from July 2024, while the on‑the‑go segment slipped by 4.5%.
- Growth inside the M25 was positive at +0.7%, whereas outside it fell -0.3%. London even outperformed the rest of the country for the first time since March.
New Store Openings & Inflation Alignment
The Tracker also flags that newly opened venues—those launched in the past year—show a 3.2% sales jump over the same month last year. That figure lines up nicely with the UK’s 2025 inflation rate as measured by the Consumer Prices Index.
Voices from the Field
Karl Chessell, director for hospitality operators and food at CGA by NIQ, says, “The summer’s been a true test of resilience: real‑term growth is still a tall order. Pubs feel a bit better than restaurants, which wrestled to keep footfall alive amid rising labor and food costs.”
He adds, “Solid total sales show that operators and investors stay optimistic enough to open new sites, yet if patterns stick, some tough spending decisions may follow.”
Saxon Moseley, head of leisure and hospitality at RSM UK, reflects, “July’s numbers underscore the market’s continued struggles: largely flat or slightly down. But the pub’s small uptick isn’t all that weak when compared to last year’s Euro finals boost.” He warns, “Restaurants’ modest growth after June’s slide is promising, yet looming cost pressures and thinning cash reserves raise red flags. With the budget looming, uncertainty may mount before things improve.”
Takeaway
In short, the hospitality landscape is wrestling with a mix of temperature‑driven lifts and budget‑driven dips. Fingers are crossed that consumer confidence climbs, but for now, the industry’s resilience hinges on navigating the fine line between optimism and caution.
