Flat February for Hospitality as Spending Remains Tight

Britain’s hospitality sector faced continued challenges in February, with like-for-like sales rising just 0.1%, well below inflation, according to the CGA RSM Hospitality Business Tracker. This follows a 1.3% year-on-year drop in January, reflecting cautious consumer spending.

Total sales, including new venues, grew 2.5%, but rising costs, including upcoming national insurance hikes, keep margins tight. Pubs performed best, up 1.7%, partly due to the Six Nations rugby tournament. Restaurant sales dipped 0.6%, with Valentine’s Day falling on a Friday rather than midweek, reducing its impact. Bars continued their decline, down 7.9%, while the on-the-go sector fell 1.9%.

London struggled more than the rest of the UK, with sales down 1.2% inside the M25, compared to a 0.5% rise outside it.

Karl Chessell, director at CGA by NIQ, noted: “After a Christmas spending boost, growth remains fragile. National insurance hikes add pressure, but big occasions like St Patrick’s Day and Easter could help. However, real-terms growth will be tough.”

For fish and chip operators, maintaining value, quality, and customer experience is key in an increasingly competitive market.