The figure is well below the current rate of inflation and continues a challenging start to 2025 for the sector, following a year-on-year drop of 1.3% in January. It indicates that many consumers continue to remain watchful of their disposable income.
The Tracker, produced by CGA by NIQ in partnership with RSM UK, shows February delivered 2.5% growth in total sales, including all venues opened by groups in the last 12 months. However, with key costs still inflationary—including via extra National Insurance contributions from April—margins in hospitality remain extremely tight.
Pubs performed the best of the major hospitality channels in the Tracker for the third month in a row. Like-for-like sales finished 1.7% ahead of February 2024, having been partly boosted by the start of the Six Nations rugby tournament. With some consumers limiting their meals out, restaurant groups’ sales fell by 0.6%. While February featured Valentine’s Day, this year it occurred on a Friday, a day that already generally sees higher On Premise visitation compared to other days of the week, and last year it fell on a Wednesday, resulting in a missed mid-week sales boost this year. Bars continued a long-term drop in growth, with like-for-like sales down by 7.9% in February. The on-the-go segment of the market slipped 1.9%.
Hospitality had a slightly tougher month in London than elsewhere, the Tracker shows. Groups’ sales inside the M25 were down by 1.2% year-on-year, but beyond the M25 they recorded a marginal rise of 0.5%.
Karl Chessell, director – hospitality operators and food, EMEA at CGA by NIQ, said: “After a flurry of spending over Christmas it’s clearly been a challenging start to 2025 for the hospitality sector. Growth is very fragile, and hikes in National Insurance Contributions will pile even more pressure on managed groups. We remain optimistic that spending will start to loosen, and brighter weather and big occasions like St Patrick’s Day, Mother’s Day and Easter should help to rally sales. Nevertheless, real-terms growth will remain hard-earned for the foreseeable future.”
Saxon Moseley, head of leisure and hospitality at RSM UK, said: “A second month of lacklustre trading results means that the hospitality sector remains in negative territory for the year to date. Consumers are opting to cut back on discretionary spending amidst growing apprehension about the UK economy and global instability. While the medium-term outlook appears more positive, the coming months will be critical for businesses grappling with both waning demand and rising costs. Next week’s Spring Statement represents a final opportunity for the government to support the sector through this challenging period, with a phased introduction of National Insurance increases and a delay to implementing the Employment Rights Act high on operators’ wish lists.”
CGA by NIQ collected sales figures directly from 113 leading managed groups for February’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 Leisure Ltd, All Star Lanes, Amber Taverns, Anglian Country Inns, Arc Inspirations, Azzurri Group (Ask Italian, Coco di Mama, Zizzi), , Barburrito, Barworks, Beds and Bars, Big Fang Collective, Big Table Group (Banana Tree Restaurants, Bella Italia, Chiquito, Frankie & Benny’s, Las Iguanas), Bill’s Restaurants, Boom Battle Bar, Boston Tea Party, Boxpark, BrewDog, Burger & Lobster, Buzzworks Holdings Group, Byron, Chance and Counters, Coaching Inn Group Ltd, Comptoir Group Plc, Cote Restaurants, Creams Café, D & D London, Darwin & Wallace, Dishoom, Five Guys, Fortnum & Mason, Fuller Smith & Turner, Gaucho Grill, Giggling Squid, Glendola Leisure, Greene King (Chef & Brewer, Hungry Horse, Flaming Grill), Gusto Restaurants, Hall & Woodhouse, Hawthorn Leisure, Heartwood Collection, Honest Burgers, HOP Vietnamese, Individual Restaurants, Junkyard Golf Club, Kibou, Laine Pub Co, Lane 7, Le Bistrot Pierre, Liberation, Lina Stores, Loungers, Lucky Voice, Marston’s, McMullen & Sons Ltd, Mildreds, Mission Mars, Mitchells & Butlers (Harvester, Toby, Miller & Carter, All Bar One), MJMK Restaurants, Mojo Bar, Mowgli, Nando’s Restaurants, Neos Hospitality, New World Trading Company, Nightcap Plc, North Brewing Co, NQ64 Arcade Bars, Oakman Inns, Parogon Pub Group, Peach Pubs, Pho, Pizza Express, Pizza Hut UK, Popeyes, Portobello Starboard Ltd, Prezzo, Punch Pub Co, Revolution Bars, Rick Stein Restaurants, Riley’s, 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, Thunderbird Fried Chicken, Tonkotsu, Topgolf Ltd, Tortilla, Tossed, Treetop Golf, True North Brew Co, Turtle Bay, Upham Pub Co, Urban Pubs & Bars, Various Eateries (Strada, Coppa Club), Village Hotels, Wagamama, Wasabi, Wells & Co, Whitbread (Beefeater, Brewers Fayre, Table Table), Wingstop, YO! Sushi, Young’s and Yummy Collection.
