Hospitality sales flatline in January as festive spending subsides

Britain’s leading managed pub, restaurant and bar groups have recorded a 0.1% drop in like-for-like sales in January as consumers reduced spending following the festive period, according to data from the latest NIQ RSM Hospitality Business Tracker.

It comes as the sector faced a challenging start to 2026, following a 2.9% year-on-year sales decline in December.

Wet weather and participation in Dry January also impacted trading, with pub groups seeing marginal like-for-like growth of 0.4%. 

While managed restaurant sales saw a slight rise of 0.3% during January, pubs have outperformed restaurants every month since the start of 2025. However, bar sales fell 4.9% behind January 2025 levels, and the on-the-go segment dropped 3.2%.

Total sales, which include venues opened in the last 12 months, rose 3.1%. This growth remains in line with recent inflation rates despite rising labour and input costs.

Performance varied by geography, with like-for-like sales increasing 0.1% outside the M25. Conversely, sales inside London fell 0.4% during the same period.

Karl Chessell, director of hospitality operators and food EMEA at NIQ, said: “January is always a tough month for hospitality, and many venues struggled for footfall as the post-Christmas pinch and rain kept many people at home. 

“New openings and higher prices mean hospitality growth is just about keeping up with inflation, and businesses will be hoping that these latest figures represent a temporary pause on spending rather than the shape of things to come in 2026. However, with so many pressures on both sales and costs, it is likely to be another challenging year for the sector.”

Saxon Moseley, head of leisure and hospitality at RSM UK, added: “The new year brought little respite for operators as the industry reported flat like-for-like results as low consumer confidence persisted into 2026, which was exacerbated by wet weather. With looming increases in business rates and national minimum wage, coupled with significant compliance costs associated with the new Employment Rights Act, the industry is in desperate need of growth. 

“Recent efforts to stimulate demand through discounting might help in the short term, but with margins squeezed, a more sustainable recovery will be required to avoid further losses on the high street.”