Britain’s leading restaurant, pub and bar groups achieved solid year-on-year sales growth of 3.2% in December 2024, the CGA RSM Hospitality Business Tracker reveals.
The like-for-like figure is the Tracker’s highest point since May and is just above Britain’s general rate of inflation. It represents a solid performance for the hospitality sector over the crucial month of December, which brought a surge in consumer spending in the final fortnight.
The Tracker—produced by CGA by NIQ in partnership with RSM UK—shows total sales growth in December was notably higher at 5.2%, reflecting a steady stream of new managed restaurant, pub and bar openings over the last 12 months.
Among major hospitality channels, pubs enjoyed the best December as consumers celebrated the run-up to Christmas and New Year’s Eve with friends and families. Pub groups’ like-for-like sales were 4.7% ahead of December 2023, while restaurants’ growth was more muted at 1.6%. Elsewhere, bars bounced back from soft trading throughout most of 2024 to post growth of 1.3%. The on-the-go segment of the market dropped 1.2%.
December trading in London comfortably outpaced the rest of the country, the Tracker shows. Managed groups’ sales inside the M25 were up by 4.6% year-on-year, while venues further afield rose 2.8%.
Karl Chessell, director – hospitality operators and food, EMEA at CGA by NIQ, said:
“After a modest performance through most of 2024, real-terms growth in December was a big relief for the hospitality sector. The late festive sales show people remain eager to celebrate special occasions in pubs, bars and restaurants, and provide a welcome buffer for the much quieter months of the year. However, with the costs of doing business sure to rise further and consumers’ confidence still patchy, 2025 is likely to be another challenging year for many hospitality businesses.”
Saxon Moseley, head of leisure and hospitality at RSM UK, said:
“December’s results cap off a lacklustre year for the hospitality industry, with average like-for-like revenues tracking below inflation for most of 2024 despite an encouraging festive trading period. This recent uptick in trade alongside a forecast improvement in consumer confidence should give operators hope that 2025 will be a stronger year. However, given the significant tax rises and regulatory burdens that will impact the sector this year, and with little capacity to absorb these additional costs, businesses will need to tread a fine line between raising prices to preserve margins whilst not spooking consumers”.
Kate Nicholls, Chief Executive of UKHospitality, said:
“December is the most important month of trading for most hospitality businesses, and was even more critical in 2024 as the sector faces £3.4 billion in added cost in April.
“Real-terms sales growth as a whole is encouraging but with performance varying quite significantly across the sector, it is unlikely to be enough to increase business confidence heading into a challenging year.”