Hospitality openings fuel total sales growth but like-for-like sales remain flat in July

However, operators may soon face tough spending choices.

Like-for-like sales across the hospitality industry remained flat in July, however, total sales increased 3.2% year-on-year, broadly in line with the UK’s rate of inflation in 2025, according to the latest CGA RSM Hospitality Business Tracker.

Karl Chessell, director - hospitality operators and food, EMEA at CGA by NIQ, said that solid growth in total sales shows operators and investors remain confident enough to open new sites, though if trading patterns continue, they will be forced to make some difficult decisions on spending.

Managed restaurant groups posted a 0.2% sales increase in July compared to the same month last year, marking their first year-on-year growth since December 2024, according to the tracker.

The modest uptick signals an early sign of stabilising consumer confidence. By comparison, bars saw a 4.3% decline and the on-the-go segment slipped 4.5%. Regionally, sales grew 0.7% inside the M25 but fell 0.3% elsewhere—the first time since March that London has outpaced the rest of the country.

“Restaurants may take solace with a return to modest growth following June’s disappointing contraction. However, with significant cost pressures and dwindling cash reserves, these are not the results the industry needed, and with both business and consumer uncertainty mounting ahead of the budget there is a real concern that things will get worse before they get better,” Saxon Moseley, head of leisure and hospitality at RSM UK, said.

CGA by NIQ collected sales figures directly from 121 leading managed groups for July’s edition of the CGA RSM Hospitality Business Tracker, which provides authoritative monthly insights into Britain’s restaurant, pub and bar sales.