Like-for-like sales across leading managed hospitality groups increased 0.8% compared with August 2025, although growth slowed from the 1.4% recorded in July, which NIQ says was boosted by the men’s football World Cup.
The latest result was the third strongest monthly performance of 2026 so far but remained below the current rate of consumer price inflation. According to the tracker, hospitality has now failed to record real-terms monthly growth for 16 consecutive months.
Restaurants were the strongest-performing channel of hospitality in August, with sales up 2.4% year-on-year. NIQ says the result was the second strongest monthly performance for restaurant groups since the beginning of 2025.
The improvement came as consumer spending shifted back towards eating out following the World Cup. Pub groups recorded more modest like-for-like growth of 0.5% in August, while bar groups saw sales fall 2.5%. The on-the-go sector recorded the sharpest decline, with sales down 5.5% year-on-year.
NIQ says the end of the World Cup made trading more challenging for pubs, while unusually hot weather across parts of Britain may also have affected footfall.
Despite relatively weak like-for-like sales growth, total hospitality sales, including venues opened in the past 12 months, were up 4.1% year-on-year in August.
London also marginally underperformed the rest of the country, with like-for-like sales among managed groups up 0.6% within the M25 compared with 0.8% elsewhere.
Karl Chessell, director of hospitality operators and food at EMEA at NIQ, says the sector had experienced a “stable if unspectacular summer”, with restaurants benefiting from a return in demand while drink-led pubs and bars faced a more difficult month.
He adds the strength of total sales growth showed operators and investors remained willing to open new sites, despite the weakness in underlying like-for-like performance.
“The underlying growth remains extremely difficult,” says Chessell.
“Hospitality will be hoping that consumers feel able to loosen their spending in the run-in to Christmas and also looking to the government for support around VAT to help drive this demand.”
Saxon Moseley, head of leisure and hospitality at RSM UK, adds that the August figures reflected a gradual improvement in consumer confidence and an increase in discretionary spending. However, he warns that growth remained vulnerable to changes in government policy.
“The recently announced tourist tax threatens to actively stifle consumer behaviour, arriving precisely when the hospitality sector urgently needs the Treasury to stimulate demand and alleviate an already crippling tax burden, rather than adding to it,” says Moseley.
“All eyes will be on next month’s budget to provide clarity and certainty as we approach the all-important festive trading period.”
The figures are based on sales data collected directly from 122 leading managed hospitality groups participating in the NIQ RSM Hospitality Business Tracker.