January Hospitality sales flatline amid consumer spending squeeze
Groups’ sales within the M25 in January were 0.7% up on last year, while sales outside it were exactly flat at 0.0%
Britain’s leading hospitality groups generated year-on-year like-for-like sales growth of just 0.1% in January, according to data from CGA.
This comes after there was like-for-like sales growth of 8.8% in December 2023.
Restaurants saw sales growth of 0.9% in January, while pubs’ trading finished 1.5% ahead of the same period last year.
After strong growth in December, bars suffered a 13.6% drop in January sales, while the on-the-go segment was 1.1% behind.
Groups’ sales within the M25 in January were 0.7% up on last year, while sales outside it were exactly flat at 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.”
Saxon Moseley, Leisure and Hospitality Partner at RSM UK, added: “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.”
