Hospitality groups’ sales down in May after weather impacts bank holidays: Britain’s leading managed hospitality groups saw sales slip 1.0% year-on-year in May, the latest CGA RSM Hospitality Business Tracker reveals. After solid growth of 4.2% in a sunny April, trading last month was weakened by cooler and wetter weather in many parts of the country. Dips in the temperature particularly affected May’s two long bank holiday weekends, which usually boost out-of-home sales. Sales through the tracker have now been negative for three of the first five months of 2025. The tracker shows pubs outperformed other channels for the sixth month in a row. Pubs’ sales were 0.5% ahead of May 2024, while restaurants dropped 2.5%. Sales in bars finished 5.1% down year-on-year, and the on-the-go segment fell 2.5%. For the fourth month out of five, trading outside the M25 was slightly stronger than in London. Groups’ sales inside the M25 in May were down by 2.3% year-on-year, but further afield, they were only 0.4% behind. May’s total sales through all channels, including at venues opened by groups in the last 12 months, were 1.6% ahead of the same month in 2024. However, this is still below the UK’s recent rate of inflation, as measured by the consumer prices index. Karl Chessell, director hospitality operators and food, EMEA at CGA by NIQ, said: “May’s numbers extend the pattern of a reasonable 2025 for pub operators but a challenging one for restaurants and bars. They are particularly concerning in the context of major increases in staff costs from April, and the chancellor’s recent spending review brought little to reduce the heavy burden on hospitality businesses. Groups will be hoping for better weather to loosen consumers’ spending in the crucial summer months, but the trading environment is going to remain very challenging for the foreseeable future.”

London Mayor unveils first al fresco dining hotspots as part of project to boost capital’s hospitality industry: London mayor Sadiq Khan has unveiled the first al fresco dining hotspots chosen to kick off a project to boost the capital’s hospitality industry. Brixton, Leyton, Shoreditch and the West End are the first beneficiaries of the mayor’s Summer Streets Fund and will introduce al fresco dining and later opening hours this summer thanks to a £300,000 grant. The project will see certain streets transformed into open-air dining areas. In Westminster, pubs, bars and restaurants on St Martin’s Lane will be able to provide open air dining and drinking once again, as they did during the pandemic. The iconic street will be car-free from 11am-11pm and al fresco licences available for up to 34 businesses, while plans will be brought forward to make this permanent in the coming months. In Shoreditch, for the first time ever, independent bars and restaurants on Rivington Street and Redchurch Street will be able to offer outdoor dining and drinking until midnight. Both streets will be car free on Fridays and Saturdays throughout the summer and businesses will be able to apply for free licences for the first three months. In Brixton, 400 square metres of outdoor dining space will provide around 80 extra tables and 400 extra seats for businesses in Atlantic Road and Brixton Station Road. Running on selected weekends, the roads will become car free zones until 10pm, with daytime activities including food markets, art workshops and live music. And in Leyton, Francis Road will extend its car free hours, making it a hub for street trading and a cultural meeting point with seating, outdoor games, late events and a weekend market. There will be further outdoor dining in the Leyton Midland Road as part of a summer event. Khan said: “The schemes announced today are just the beginning and we’re looking to build on their success across London in the years ahead. We saw what a success it was during the pandemic, and I want to expand al fresco dining further in the years to come.” Kate Nicholls, chief Executive of UK Hospitality, said: “I’m delighted that there has been such significant interest from London boroughs in the Summer Streets Fund and that we're seeing swift decisions on successful schemes. These initiatives can provide a real boost for hospitality businesses, Londoners and visitors to the capital.”Michael Kill, chief executive of the Night Time Industries Association, added: “Creating vibrant, accessible outdoor spaces for food, drink and culture is a powerful way to bring communities together and boost local economies. We see this as a strong foundation and hope it will grow into a city-wide movement that helps reshape and revitalise London’s nightlife for years to come.”