Pubs outperform restaurants in strong December

British pub groups ended 2025 with their strongest month of the year, outperforming restaurants and bars as festive celebrations drove higher spending, according to the latest NIQ RSM Hospitality Business Tracker.

In December, like-for-like sales across managed hospitality rose 2.9%, the highest level since April and only the second month in 2025 in which growth exceeded 1%. 

Pubs led the sector, with like-for-like sales up 5.1% compared with December 2024 and “comfortably” ahead of inflation. The tracker shows pubs outperformed restaurants in every month of 2025, supported by a late surge in visits in the run-up to Christmas and New Year.

Managed restaurants recorded much weaker growth, with like-for-like sales rising 0.8% year-on-year. Managed bars continued to lag the market, with sales down 1.7%, although December was still the best-performing month of the year for both channels.

When new openings over the past 12 months are included, total sales across managed hospitality groups rose 6.2% in December, around twice the rate of inflation, suggesting continued investment by larger operators despite trading pressures.

Growth was slightly stronger outside London, with like-for-like sales up 3% beyond the M25 compared with 2.8% within it.

Karl Chessell, director of hospitality operators and food for EMEA at NIQ, said: “December’s like-for-like growth was steady rather than spectacular, and it is unlikely to have been enough to offset the extra burden of costs imposed on hospitality over the course of 2025. More positively, a late flurry of celebratory drinking-out means many pub operators ended the year on a high and started the new year with valuable extra reserves. 

“Strong total growth also shows groups remain optimistic enough about the long-term future to invest in new sites. However, with consumers’ spending still fragile and margins so tight, the trading environment is likely to remain challenging for some time to come.”

Saxon Moseley, head of leisure and hospitality at RSM UK, added: “2025 was a difficult year for the sector and while these results are hardly earth shattering, they were the best like-for-like performance for restaurants and bars this year, offering operators a glimmer of hope for 2026. 

“Pubs continue to trade strongly and are best placed to capitalise on growing consumer confidence as we start the new year. However, they are also contending with significant cost pressures which are disproportionately weighing on the sector, eroding profitability and in some cases accelerating closures. The industry is very much in need of some good news in 2026.”