Whilst a rising cost of living is keeping Brits cautious about discretionary spending, the hospitality industry is finally showing signs of resurgence. However, consultancy firm CGA expects the road to recovery to be a winding one, highlighting the importance of reliable earners – such as fruit machines – for operators in the pub sector.

The hospitality industry is fighting the good fight  as it ekes out some semblance of a recovery, according to new insights from CGA by NIQ. But, rising living costs continue to influence where and how consumers choose to spend.

Notably, 55 percent of UK households say they are either severely or moderately impacted by the increasing costs of living. High prices and reduced disposable income remain the biggest hurdles for the 42 percent of consumers who are going out less than usual. 

In contrast, 20 percent of consumers are going out more. Social motivations, like friends and family going out more and treats, are key factors driving increased visitation frequency. 

In terms of spend, fewer consumers have decreased their overall monthly expenditure compared to last year. But those watching their spend per visit are doing so to budget, indicating ongoing caution with disposable income.

“It’s a pivotal moment for the British on premise,” said Karl Chessell, CGA by NIQ’s director of hospitality operators and food. “Many consumers understandably remain cautious. But there’s growing appetite among important segments to go out, spend more, and try something new – if the offer is right. As we head into summer, operators and suppliers who focus on delivering value, relevance, and quality across the most effective touchpoints are best placed to sustain and grow that spend by aligning with changing consumer priorities.”

Consumer demand for value is reflected in category performance. Beer, often perceived as good value, remained the most popular drink category in February 2025, while the spirits category is under pressure as habits and occasions evolve.

The new research by CGA shows that while consumer spending is on the road to recovery, hospitality remains a highly competitive market. It reaffirms the importance of fruit machines as reliable earners for both independent operators and chains like Wetherspoons, where machine income has continued to rise despite food and beverage sales stagnating – a testament to the exceptional product the gaming and amusements industry has produced in recent years.