Hospitality sales growth trails inflation in May for 13th month

Leading British hospitality groups have seen like-for-like sales grow by just 0.4% in May, falling behind inflation for the 13th consecutive month, according to the latest NIQ RSM Hospitality Business Tracker. 

The figures, which also showed the second month of growth for the sector so far in 2026, reflects an ongoing squeeze on consumer disposable income.  

Pub groups were the best-performing channel, with sales rising 1.1% ahead of May 2025. This was attributed to a burst of warm weather over the late bank holiday weekend increased footfall in beer gardens and terraces.

Meanwhile, managed restaurant sales grew by 0.5%, marking a fifth positive month out of six for the sector following a challenging 2025. 

Operators continue to face high costs and a tightening of consumer spending on eating out, and as a result, the bar sector saw sales drop by 6.1%, spelling the worst figure for the channel since early in the previous year.

Total sales – including venues opened in the last 12 months – rose by 3.9% in May, according to the tracker. This put total growth slightly ahead of the recent rate of inflation.

London operators were found to have outperformed the rest of the country due to better weather over the bank holiday. Sales rose by 3% within the M25 but fell by 0.6% outside the motorway network.

Karl Chessell, director of hospitality EMEA at NIQ, said: “Hospitality like-for-like sales have been frustratingly short of inflation for many months now, and it’s clear that any recent growth is being driven by higher prices or new openings rather than extra volume. Millions of consumers are very cautious about their spending, and bars in particular are being heavily impacted by tighter budgets and changing leisure habits. 

“The football World Cup brings a great opportunity for pubs to boost footfall in June and July, and reports of more staycations should also work to the advantage of all operators. Nevertheless, hospitality remains under severe strain.”

Saxon Moseley, head of leisure and hospitality at RSM UK, added: “May’s figures continue an unwelcome 13-month run of below-inflation growth, confirming that the sector remains stuck in stagnation. Strip out the capital’s figures, and the rest of the country reported negative like-for-like growth. This is a real concern for regional operators and a stark reminder that consumer spending remains incredibly uneven. 

“All will be hoping the World Cup stimulates demand across the UK and gives the industry a much-needed boost ahead of the critical summer holidays.”