Managed hospitality businesses across Britain posted encouraging year-on-year growth in December 2024, with sales rising 3.2% according to the latest CGA RSM Hospitality Business Tracker. This marks the strongest performance since May and edges above the country’s current inflation rate with a surge in consumer spending in the last two weeks of the month.
The Tracker—produced by CGA by NIQ in partnership with RSM UK— shows an even more impressive total sales growth in December at 5.2%, reflecting a steady stream of new managed restaurant, pub and bar openings over the last 12 months.
Breaking down performance by venue type, pubs emerged as December’s standout performers as people gathered to celebrate the festive period and New Year with loved ones. Pub groups recorded a 4.7% increase compared to December 2023, while restaurants saw more modest growth of 1.6%. The bar sector, which had experienced challenging trading conditions throughout much of 2024, showed signs of recovery with 1.3% growth. However, the on-the-go segment experienced a decline of 1.2%.
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.”
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.”