After managed hospitality sales dropped 1.3 percent in January, a second month of “lacklustre trading results” has delivered like-for-like sales growth of just 0.1 percent, with the pub segment doing the brunt of the work to bring the industry into positive figures.

The latest CGA RSM Hospitality Business Tracker has revealed that the country’s leading hospitality groups saw like-for-like sales rise just 0.1 percent in February, as diners, pubgoers and holiday makers remain cautious over their spending.

Though the pub sector performed marginally better than others with sales up 1.7 percent, the overall total for the hospitality industry as a whole is significantly below the current rate of inflation, and indicative of challenging times ahead.

“Growth is very fragile, and hikes in National Insurance Contributions will pile even more pressure on managed groups,” said Karl Chessell, director of hospitality operators and food, EMEA, at CGA by NIQ. 

“We remain optimistic that spending will start to loosen, and brighter weather and big occasions like St Patrick’s Day, Mother’s Day and Easter should help to rally sales. Nevertheless, real-terms growth will remain hard-earned for the foreseeable future.”

The Six Nations helped pubs ease ahead of sectors such as restaurants, which reported a 0.6 percent decline in sales, while bars saw sales tumble 7.9 percent.

“A second month of lacklustre trading results means that the hospitality sector remains in negative territory for the year to date,” said RSM UK’s head of leisure and hospitality, Saxon Moseley. “Consumers are opting to cut back on discretionary spending amidst growing apprehension about the UK economy and global instability.”

“While the medium-term outlook appears more positive, the coming months will be critical for businesses grappling with both waning demand and rising costs.”