Tight margins squeeze hospitality as takeaway spending sinks
33% of the population plans to cut restaurant visits to protect their diminishing disposable income.
The UK’s hospitality sector continues to face challenges as consumer spending remains fragile and margins are tight, as evidenced by flat December like-for-like sales.
According to the latest NIQ RSM Hospitality Business Tracker, consumer spending on restaurants rose just 0.8%. The numbers represent the best month of 2025.
A separate report by RSM UK revealed that consumers are most likely to cut back on eating or drinking out (33%) and takeaways (27%) as 60% said they would rather save or use money to pay off debts.
With all channels combined, Britain’s managed hospitality groups achieved like-for-like growth of 2.9% in December. It is the tracker’s highest point since April, and only the second time it topped 1% in the whole of 2025.
Saxon Moseley, head of leisure and hospitality at RSM UK, said that 2025 was a difficult year for the sector.
“Whilst these results are hardly earth-shattering, they were the best like-for-like performance for restaurants and bars this year, offering operators a glimmer of hope for 2026. The industry is very much in need of some good news in 2026.” Moseley said.
