However, other areas of hospitality faced challenges, as many customers opted to spend their money on the World Cup or stayed at home. Restaurant groups experienced a 0.7% decline in sales year-on-year, marking June as their second-worst month of 2026. Meanwhile, bar groups saw their sales fall by 5.8%, continuing a trend of negative performance.
Overall, the hospitality sector's performance in June was virtually flat, with sales just 0.2% higher than the previous year. Growth remained under one percentage point on either side of flat throughout the first half of 2026, with performance below the UK’s inflation rate, as measured by the Consumer Prices Index, for 14 consecutive months.
On a total sales basis, June was more encouraging. When accounting for venues that have opened in the past 12 months, sales rose by 3.8%, slightly outpacing inflation.
For the third consecutive month, trading in London outperformed the rest of the country. Groups’ like-for-like sales within the M25 increased by 1.0%, while sales beyond the M25 remained unchanged.
“June’s numbers complete a modest first half of the year for hospitality in which any real-terms growth was very hard-earned. The combination of the World Cup and sunshine was a boost to pubs, and we can expect strong July results after England’s progress in the tournament. However, big events and the heat tend to work less well for restaurants, who are besieged by high costs. It’s encouraging to see topline growth, which indicates that operators and investors have enough long-term confidence to open new premises,” stated Karl Chessell, director and hospitality operators and food, EMEA at NIQ.
Saxon Moseley, head of leisure and hospitality at RSM UK, continued: “Wet-led pubs were the real winners of the World Cup with strong like-for-like growth bolstered by the hot weather, underscoring the importance of experience-led spending in the current climate. RSM's latest Consumer Outlook highlights that discretionary spending remains constrained and highly selective. Good news for one segment of the hospitality market invariably means others coming under pressure, with restaurants, bars and on-the-go outlets all losing ground in June.”