May sales slip after weak Bank Holidays

Britain’s leading managed hospitality groups saw sales slip by 1% year-on-year in May, according to the latest CGA RSM Hospitality Business Tracker.

After solid growth of 4.2% in a sunny April, trading last month was weakened by cooler, wetter weather in many parts of the country. Temperature dips particularly affected May’s two long Bank Holiday weekends, which usually boost out-of-home sales. Sales through the tracker have now been negative for three of the first five months of 2025.

The tracker—produced by CGA by NIQ in partnership with RSM UK—shows that pubs outperformed other channels for the sixth consecutive month. Pub sales were 0.5% ahead of May 2024, while restaurants dropped 2.5%. Sales in bars finished 5.1% down year-on-year, while the on-the-go segment fell 2.5%.

For the fourth month out of five, trading outside the M25 was slightly stronger than in London. Group sales inside the M25 in May were down by 2.3% year-on-year, but further afield they were only 0.4% behind.

May’s total sales through all channels—including at venues opened by groups in the last 12 months—were 1.6% ahead of the same month in 2024. However, this is still below the UK’s recent rate of inflation, as measured by the Consumer Prices Index.

Tough trading conditions

Karl Chessell, director of hospitality operators and food, comments: "May’s tracker numbers extend the pattern of a reasonable 2025 for pub operators but a challenging one for restaurants and bars. They are particularly concerning in the context of major increases in staff costs from April, and the chancellor’s recent spending review brought little to reduce the heavy burden on hospitality businesses.

"Groups will be hoping for better weather to loosen consumers’ spending in the crucial summer months, but the trading environment is going to remain very challenging for the foreseeable future."

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