Hospitality Sales Rebound as Inflation Pressures Ease, but 2025 Brings New Challenges

Hospitality sales grew 1.6% year-on-year in the 12 weeks ending 19 November 2024, improving to +2.3% in the latest four weeks, according to analysis from HDI, the leading provider of card spending insight and pricing data to the UK hospitality sector.

Independents & Smaller Players continued to outperform, with Pubs & Bars and Coffee & Sandwich Shops showing encouraging growth. Inflationary pressures are finally easing, with price increases slowing to +3.6% for Managed Pubs & Bars and +3.3% for Quick Service Restaurants & Coffee Shops.

However, the gap between grocery and hospitality prices is widening, particularly in categories like Beer & Cider, which have seen grocery price deflation. This highlights a growing need for operators to deliver “value for experience” to retain customer loyalty.

Mark Bentley, business development director at HDI, said: “Following the recent budget announcements, April 2025 will bring additional inflationary pressures. Operators will need to understand how and where they can take price without alienating customers, which is where a data-led approach based on understanding customer preferences and the dynamics of local markets in-detail will be critically important.”