Restaurants return to growth in March but hospitality's cost fears mount: Britain’s restaurant groups finished a difficult first quarter with modest like-for-like growth in March, the new NIQ RSM Hospitality Business Tracker reveals. The Tracker – produced by NIQ, powered by CGA intelligence, in association with RSM – shows restaurants’ sales in the month were 2.5% ahead of March 2025. Pub groups, meanwhile, achieved a like-for-like increase of only 0.2% in March, despite a boost from St Patrick’s Day celebrations. It was the first time that restaurants have outpaced pubs for growth for 16 months. Managed bars saw trading fall by 2.6% year-on-year, while there was marginal growth of 0.9% in the on-the-go segment. When channels are combined, Britain’s leading managed hospitality groups achieved like-for-like growth of 0.9% in March – which is better than either January or February but well below Britain’s recent rate of inflation. The Tracker also indicates the continued cautious expansion of managed groups. On a total sales basis, including at venues launched by hospitality groups in the last 12 months, their sales rose 4.3%, just ahead of inflation. Despite openings and real-terms growth, hospitality remains overwhelmed by high costs in key inputs like food, drink and labour. There are also fears of renewed inflation as a result of ongoing uncertainty in the Middle East, which is likely to push up prices in many energy-related areas. The Tracker’s regional breakdown of sales, meanwhile, indicates a slightly better March for operators in London. Like-for-like sales rose by 0.4% within the M25 and by 1.1% further afield. Karl Chessell, director – hospitality operators and food, EMEA at NIQ, said: “Restaurants’ move back into the black in March is a welcome development after a very challenging start to the year. Nevertheless, many groups remain reliant on new openings and deliveries for real-terms growth, and geopolitical concerns are casting a long shadow over the months ahead. Hospitality faces relentless challenges that are not of its own making, and without targeted government support it is likely to be a challenging summer season.”