Spending in pubs surges as Brits flock to beer gardens
Pubs enjoyed a boost in April during the sunny spring weather as Brits opted for outdoor beer gardens over indoor restaurants.
Like-for-like sales growth at pubs reached 9.1 per cent year on year, according to the latest CGA RSM Hospitality Business Tracker.
Sales across all hospitality outlets were 4.2 per cent ahead of April 2024 – comfortably beating the UK’s recent rates of inflation – although restaurant sales only ticked up 0.9 per cent and bar sales fell 4.5 per cent.
Head of leisure and hospitality at RSM UK, Saxon Moseley, said the uptick in overall sales may “signal a shift in consumer behaviour” as better weather translates into higher spending.
“Pubs were the clear winners from the spring sunshine, but other parts of the hospitality sector can also take encouragement from the broader rise in activity,” Moseley said.
While consumer confidence remains shaky, it seems to be at the start of a period of recovery.
Three separate surveys of consumer confidence rose in May after dropping in cost-heavy “awful April”.
“The measure for personal finances looking ahead for the next 12 months has moved out of negative territory… there’s a similar improvement in how consumers see the coming year’s general economy,” consumer insight director at GfK, Neil Bellamy, said.
Taxes hit pubs hard
Better sentiment is welcome news for Britain’s hospitality, which has been shouldering a heavy tax burden and endlessly higher costs.
Business rates, employers’ national insurance contributions and wages have all put pressure on pubs’ thin margins this year.
There are also cost pressures in the form of food inflation – last week, All Bar One-owner Mitchells and Butlers said rising food costs were a significant headwind.
But there is room for cautious optimism: along with RSM’s positive figures, a host of major pub chains have recently reported upticks in revenue and profit, including Wetherspoons, Martson’s and Young’s.
Karl Chessell, hospitality boss at CGA, said pubs had a “very bright start” to 2025.
“It is hopefully a sign that some consumers are spending a little more freely, though a disappointing month for restaurants suggests others were simply switching from eating out to drinking out.
“Ongoing high costs for operators, including through heavy new labour bills from April, continue to pile pressure on margins—but while the sun continues to shine, pubs with outdoor spaces can expect trade to remain strong.”