A combination of prolonged wet weather across the country and people participating in Dry January were contributing factors in a sales drop of 0.1% in the first month of the year, according to the latest NIQ RSM Hospitality Business Tracker.
Pub groups achieved a marginal like-for-like sales growth of 0.4% over the month, ahead of managed restaurant operators, where sales rose by 0.3%. The bar sector continued its long run of negative numbers with sales slipping 4.9%, while sales in the on-the-go category dropped by 3.2%.
The slow start to the year comes after strong December trading, when sales rose 2.9% year-on-year, which may have left many consumers keeping a close lid on their outgoings in January, the Tracker says.
“The new year brought little respite for operators as the industry reported flat like-for-like results as low consumer confidence persisted into 2026, which was exacerbated by wet weather,” says Saxon Moseley, head of leisure and hospitality at RSM UK.
“Recent efforts to stimulate demand through discounting might help in the short term, but with margins squeezed, a more sustainable recovery will be required to avoid further losses on the high street.”
The Tracker is produced by NIQ, powered by CGA intelligence, in association with RSM.