Hospitality groups see sales rise 3.6% in May

It is a quick return to growth after a 1.7% drop in trading in April​​, which followed six consecutive months of positive numbers. May’s figure is also comfortably above the current rate of inflation, as measured by the Consumer Prices Index.

An easing of some household bills, along with two bank holiday weekends, is credited with boosting consumer spending during the month.

The Tracker — produced by CGA by NIQ in partnership with RSM UK — shows year-on-year growth was highest in the pub sector at 4.4%, while restaurants achieved 3.8%. Bars saw a 2.7% drop, though this is a substantial improvement on April’s figure. The on-the-go segment was 1.6% down.

For the fifth time in six months, hospitality groups performed better in London than elsewhere in Britain. May sales were 4.1% ahead of last year inside the M25, while increasing by 3.5% beyond it.

“May brought a relief to return to above-inflation growth in hospitality after a blip of negative numbers in April,” says Karl Chessell, a director at CGA by NIQ.

“Wet and cool weather continues to work against pub operators, but they and restaurants may be starting to feel the benefit of a relaxation of spending among some consumers, especially over occasions like Bank Holiday weekends. Bars and on-the-go sites are meanwhile still some way short of where they could be.

“The General Election and greater economic certainty may help to unlock further spending, but operators will be hoping above all for much brighter summer weather to tempt people out of home.”