Tight consumer spending after festive celebrations led to a 0.1% drop in like-for-like sales at Britain’s top managed restaurant, pub and bar groups in January, according to the latest NIQ RSM Hospitality Business Tracker.

The Tracker, produced by NIQ, powered by CGA intelligence, in association with RSM, highlights the challenging trading environment facing the sector in 2026. A slow start to the year follows a flurry of spending in December, when sales rose 2.9% year-on-year, which may have left many consumers keeping a close lid on their outgoings in January. Trading was also impacted by prolonged wet weather in many parts of the country, and by participation in ‘Dry January’.

Fractional growth for pubs and restaurants

The NIQ RSM Hospitality Business Tracker reveals pub groups achieved marginal like-for-like sales growth of 0.4% in the first month of 2026. This was fractionally ahead of managed restaurant operators, where sales edged up 0.3%. It means pubs have outperformed restaurants every month since the start of 2025.

Among other channels, bars sustained a long run of negative numbers with sales slipping 4.9% behind the levels of January 2025. In the on-the-go segment, trading dropped 3.2%.

New openings keep growth up with inflation

There was more encouraging news in the Tracker on a total sales basis. Adding in venues opened by hospitality groups in the last 12 months, growth rose to 3.1%—in line with the country’s rate of inflation in recent months. However, sharp increases in the costs of labour and other key inputs mean operators’ profit margins have been very tightly squeezed in recent months.

Other insights from the Tracker include a marginally better month for groups outside of London. Like-for-like sales nudged up 0.1% beyond the M25, but dropped 0.4% inside it.

Saxon Moseley, Head of Leisure and Hospitality at RSM UK, said: “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. With looming increases in business rates and national minimum wage, coupled with significant compliance costs associated with the new Employment Rights Act, the industry is in desperate need of growth. 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.”

Karl Chessell, Director - Hospitality Operators and Food, EMEA at NIQ, said: “January is always a tough month for hospitality, and many venues struggled for footfall as the post-Christmas pinch and rain kept many people at home. New openings and higher prices mean hospitality growth is just about keeping up with inflation, and businesses will be hoping that these latest figures represent a temporary pause on spending rather than the shape of things to come in 2026. However, with so many pressures on both sales and costs, it is likely to be another challenging year for the sector.”

NIQ collected sales figures directly from 117 leading managed groups for January’s edition of the NIQ RSM Hospitality Business Tracker, which provides authoritative monthly insights into Britain’s restaurant, pub and bar sales. Companies participating in the Tracker receive a fuller breakdown of trading that helps to benchmark performance and understand market trends. To join the cohort, contact Andrew Dean at andy.dean@nielseniq.com

Participants in the NIQ RSM Hospitality Business Tracker: Adventure Leisure Ltd, All Star Lanes, Amber Taverns, Anglian Country Inns, Arc Inspirations, Azzurri Group (Ask Italian, Coco di Mama, Zizzi), Barburrito, Barworks, Beds and Bars, Big Fang Collective, Big Table Group (Banana Tree Restaurants, Bella Italia, Chiquito, Frankie & Benny’s, Las Iguanas), Bill’s Restaurants, Bleecker St Burger, Boisdale Ltd, Boom Battle Bar, Boston Tea Party, Boxpark, BrewDog, Burger & Lobster, Buzzworks Holdings Group, Byron, Chaiiwala, Chance and Counters, Coaching Inn Group Ltd, Comptoir Group Plc, Cote Restaurants, Creams Café, Darwin & Wallace, Dishoom, Evolv Collection, Five Guys, Flat Iron, Fortnum & Mason, Fuller Smith & Turner, Gaucho Grill, Giggling Squid, Glendola Leisure, Gordon Ramsay Restaurants, Greene King (Chef & Brewer, Hungry Horse, Flaming Grill), Hall & Woodhouse, Hawthorn Leisure, Heartwood Collection, Honest Burgers, HOP Vietnamese, Kibou, Kricket, Laine Pub Co, Lane 7, Liberation, Lina Stores, Loungers, Lucky Voice, Marston’s, McMullen & Sons Ltd, Megans, Mildreds, Mission Mars, Mitchells & Butlers (Harvester, Toby, Miller & Carter, All Bar One), MJMK Restaurants, Mojo Bar, Mowgli, Nando’s Restaurants, Neos Hospitality, New World Trading Company, Nightcap Plc, North Brewing Co, NQ64 Arcade Bars , Open House London, Parogon Pub Group, Pho, Pizza Express, Pizza Hut UK, Popeyes, Portobello Starboard Ltd, Prezzo, Public House Group, Punch Pub Co, Rick Stein Restaurants, Riley’s, Rosa’s Thai, Roxy Leisure, San Carlo, Sandbox VR, Shepherd Neame, Simmons Bars Group, Southern Wind Group (Fazenda), St Austell, Star Pubs & Bars, State of Play Hospitality, Stonegate Pub Co (Slug & Lettuce, Yates’, Walkabout, Bermondsey Pub Company), Tasty Plc, TGI Fridays UK, The Alchemist, The Fulham Shore, The Restaurant Group, Thunderbird Fried Chicken, Tonkotsu, Topgolf Ltd, Tortilla, Tossed, Treetop Golf, True North Brew Co, Upham Pub Co, Urban Pubs & Bars, Urban Village Pub Co, Various Eateries (Strada, Coppa Club), Village Hotels, Wagamama, Wasabi, Wells & Co, Whitbread (Beefeater, Brewers Fayre, Table Table), Wingstop, Yolk, YO! Sushi, Young’s and Yummy Collection.

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NielsenIQ (NIQ) is a leading consumer intelligence company, delivering the most complete understanding of consumer buying behavior and revealing new pathways to growth. Our global reach spans over 90 countries covering approximately 85% of the world's population and more than $7.2 trillion in global consumer spend. With a holistic retail read and the most comprehensive consumer insights—delivered with advanced analytics through state-of-the-art platforms—NIQ delivers the Full View™.

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