The flat start to the year indicates pressure on consumers’ spending after a bumper festive season that saw the Tracker finish 8.8% ahead in December 2023. Trading was also constrained by Dry January resolutions, poor weather and further rail strikes.
The Tracker—produced by CGA by NIQ in partnership with RSM UK—indicates like-for-like sales growth of 0.9% for restaurants in January, while pubs’ trading finished 1.5% ahead. After strong growth in December, bars suffered a 13.6% drop in January sales, while the on-the-go segment was 1.1% behind.
Trading patterns were even across the country, the Tracker shows. Groups’ sales within the M25 in January were 0.7% up on last year, while sales outside it were exactly flat (0.0%).
Karl Chessell, director – hospitality operators and food, EMEA at CGA by NIQ, said: “After spending freely in the run-up to Christmas, consumers were clearly watching their outgoings very carefully in January. It is a reminder that while people remain eager to eat and drink out when they can, rising costs continue to limit discretionary spending. With hospitality operators’ margins also still squeezed by inflation, the sector needs sustained government support on taxes and other issues if it is to unleash its full potential to invest and create jobs.”
Karl Chessell, director – hospitality operators and food, EMEA at CGA by NIQ, said: “After spending freely in the run-up to Christmas, consumers were clearly watching their outgoings very carefully in January. It is a reminder that while people remain eager to eat and drink out when they can, rising costs continue to limit discretionary spending. With hospitality operators’ margins also still squeezed by inflation, the sector needs sustained government support on taxes and other issues if it is to unleash its full potential to invest and create jobs.”
Saxon Moseley, Leisure and Hospitality Partner at RSM UK, said: “Given the impact of successive storms Henk, Isha and Jocelyn that left many Brits sheltering at home in January alongside acute competition for scarce discretionary spending, these results demonstrate the appetite of consumers who continue to favour experiences over “things”. With ongoing cost pressures having already accounted for some recent high-profile restaurant closures, operators will be hoping that the continued fall in inflation, the prospect of interest rate cuts in the Spring and the Six Nations rugby will tempt consumers to venture out and support their local establishments.”
CGA by NIQ collected sales figures directly from 103 leading managed groups for October’s edition of the CGA RSM Hospitality Business Tracker, which provides authoritative monthly insights into Britain’s restaurant, pub and bar sales. Companies participating in the Tracker receive a fuller breakdown of trading that helps to benchmark performance and understand market trends. To join the cohort, contact Andrew Dean at andy.dean@nielseniq.com
Participants in the CGA RSM Hospitality Business Tracker: Adventure Bars, Adventure Leisure Ltd, All Star Lanes, Amber Taverns, Anglian Country Inns, Arc Inspirations, Azzurri Group (Ask Italian, Coco di Mama, Zizzi), Ballie Ballerson, Banana Tree Restaurants, Barburrito, Beds and Bars, Big Table Group (Bella Italia, Chiquito, Frankie & Benny’s, Las Iguanas), Bill’s Restaurants, Boxpark, BrewDog, Burger & Lobster, Buzzworks Holdings Group, Byron, Chopstix, Coaching Inn Group Ltd, Comptoir Group Plc, Cote Restaurants, Creams Café, Darwin & Wallace, Dishoom, Dominion Hospitality, Five Guys, Fortnum & Mason, Fuller Smith & Turner, Gaucho Grill, Giggling Squid, Greene King (Chef & Brewer, Hungry Horse, Flaming Grill), Gusto Restaurants, Hall & Woodhouse, Hawthorn Leisure, Heartwood Collection, Honest Burgers, HOP Vietnamese, Individual Restaurants, Island Poké, Junkyard Golf Club, Kibou, Laine Pub Co, Le Bistrot Pierre, Liberation, Lina Stores, Loungers, Lucky Voice, Marston’s, McMullen & Sons Ltd, Mildreds, Mitchells & Butlers (Harvester, Toby, Miller & Carter, All Bar One), MJMK Restaurants, Mojo Bar, Mowgli, Nando’s Restaurants, New World Trading Company, North Brewing Co, Oakman Inns, Parogon Pub Group, Peach Pubs, Pho, Pizza Express, Pizza Hut UK, Portobello Starboard Ltd, Prezzo, Punch Pub Co, Pure, Rekom UK, Revolution Bars, Rick Stein Restaurants, Riley’s, Rola Wala, Rosa’s Thai, Roxy Leisure, San Carlo, Shepherd Neame, Simmons Bars Group, Snug Bar, Southern Wind Group (Fazenda), St Austell, Star Pubs & Bars, State of Play Hospitality, Stonegate Pub Co (Slug & Lettuce, Yates’, Walkabout, Bermondsey Pub Company), Tasty Plc, TGI Fridays UK, The Alchemist, The Restaurant Group, Tonkotsu, Tortilla, True North Brew Co, Upham Pub Co, Various Eateries (Strada, Coppa Club), Village Hotels, Wagamama, Wasabi, Whitbread (Beefeater, Brewers Fayre, Table Table), Wingstop, YO! Sushi and Young’s.
