Hospitality Sector Index report sees challenges in November

Moore Kingston Smith's latest Hospitality Sector Index report shows just a +0.6% month‑on‑month revenue uplift across restaurants, pubs and bars, a reminder that trading conditions remain extremely challenging.

While pubs & bars managed +3.89% revenue growth on leaner staffing (+1.00% hours worked), other segments tell a tougher story: casual dining slipped −2.00%, and fine dining’s modest +1.25% rise came with higher labour input. Year on year, revenues are +2.73%, but still lag inflation, underlining the pressure on margins and the sector’s relentless focus on efficiency.

November 2025 vs prior month

The UK hospitality industry showed marginal progress in November 2025, as revenue increased by 0.60% with a similar 0.52% rise in hours worked suggesting further productivity improvement opportunities are limited.

The Fine Dining segment demonstrated positive momentum, observing a like-for-like revenue uplift of 1.25% alongside a 1.38% increase in hours worked. This movement was driven by a heightened demand for premium dining experiences as the festive period starts, with corporate events and seasonal celebrations contributing to stronger performance.

The Pubs and Bars segment recorded a 3.89% increase in revenue (on a like-for-like basis), supported by an increase in seasonal social events. This significant revenue uplift was achieved with a 1.00% rise in hours worked, reflecting strong operational leverage and efficient management of labour.

In contrast, Casual Dining is feeling the pressure as the operators reported a 2.00% decline in revenue, along with a 0.38% rise in hours worked (on a like-for-like basis). This trend suggests a possible shift in consumer behaviour, with patrons either opting for more premium experiences, as seen in the Fine Dining sector’s growth, or choosing home-based celebrations, thereby squeezing the casual dining market.

November 2025 vs November 2024

The UK restaurant sector showed an upturn in revenue in November 2025 compared to the previous year, however the like-for-like increase of 2.73% is still noticeably lower than inflation for the same period. Whilst revenue trends varied between segments, a managerial focus on enhancing operational efficiency was evident through a consistent reduction in hours worked across the board. The data supports the anecdotal suggestions that the fears that these government led increases in wage inflation have resulted in reduced employment opportunities in the sector.

Pubs and Bars observed a like-for-like 2.23% revenue increase compared to the same month a year ago. This was achieved with a more significant 3.26% fall in hours worked indicating that operators are tightening their staffing models to reduce labour costs and maintain profitability.

Casual Dining has faced the most challenging conditions, experiencing a 4.84% like-for-like decline in revenue and an even steeper 7.05% decrease in labour hours. These figures illustrate the contemporary cost-of-living pressure facing the UK public, in which consumers are cutting discretionary spending on everyday dining experiences.

Fine Dining continues to outperform other categories, with an annual like-for-like uplift in revenue of 8.97% whilst also managing a 0.92% dip in hours worked. This suggests that these operators continue be streamlining operations and consumers demonstrate an ongoing willingness to opt for premium experiences and high-quality food, even in a challenging economic climate and operators have been able to pass on some of the inflationary pressures.

Hotels – October 2025*

 *The hotel data reflects a period one month earlier than the restaurant data due to an industry reporting lag.

October 2025 vs prior month

In the Hotel sector, comparing October 2025 with September 2025 on a like-for-like basis, revenue grew significantly by 8.36%, while hours worked saw a slight decline of 0.13%. This pattern mirrors the broader trend observed across other segments during the same relative period. The sharp revenue increase can be attributed to an increased demand for leisure breaks, business conferences and seasonal bookings. The marginal reduction in labour hours suggests operators continue to maintain vigilant regarding cost control.

October 2025 vs October 2024

Based on October’s year-on-year data, Hotel’s observed a 1.37% increase in revenue. However, this was achieved with a 4.87% decrease in hours worked, also illustrating a conscious strategy by operators to improve operational efficiency in order to protect margins.

Summary

Month-on-month summary

In summary, these trends reflect the agility of the UK hospitality sector during the festive period. While premium and social experiences enjoyed growth in certain segments, other operators faced pressure from changing consumer behaviours. Labour hours have remained relatively stable over the period, suggesting that businesses are maintaining consistent staffing levels to manage seasonal pressures without incurring additional costs.

Year-on-year summary

In conclusion, the UK hospitality industry is actively adapting to changing consumer spending habits and rising operational costs. While revenue patterns differ, the consistent decline in labour hours across all segments paints a clear picture of an industry focused on productivity optimisation to ensure long-term profitability and short-term viability.