Measured at constant 2019 prices, the increase reflects improving consumer activity despite ongoing economic pressure, with growth largely driven by food sales and alternative revenue streams.
Food sales and ‘other’ income lead growth
The strongest annual gains were recorded in:
- ‘Other’ income, which surged by 21.9%, indicating diversification in revenue streams
- Food sales, which increased by 7.1%, reinforcing sustained demand for core offerings
These gains highlight how operators are expanding beyond traditional dine-in revenue, tapping into new income channels while maintaining steady food demand.
Fast food and casual dining drive performance
By type of enterprise, growth was primarily fuelled by:
- Takeaway and fast-food outlets, which rose 9.0% year-on-year, contributing 3.5 percentage points to total growth
- Restaurants and coffee shops, which increased 2.4%, contributing 1.1 percentage points
This performance underscores the continued dominance of convenience-led formats, with fast food and takeaway options remaining resilient in a price-sensitive consumer environment.
Sustained momentum
Looking at the broader trend, total industry income increased by 4.2% in the three months ending January 2026, compared to the same period in 2025.
Key contributors included:
- Takeaway and fast-food outlets: up 6.5%, contributing 2.6 percentage points
- Restaurants and coffee shops: up 4.5%, contributing 2.2 percentage points
The data points to consistent, moderate growth across both quick-service and sit-down dining segments.
Month-on-Month recovery signals stability
On a seasonally adjusted basis, income rose 0.9% in January 2026 compared to December 2025, marking a rebound after a 2.0% decline in December and a marginal 0.1% increase in November.
This recovery suggests improving trading conditions at the start of the year, following typical year-end volatility.
Retail and hospitality implications
For retailers and hospitality operators, the data highlights several key trends shaping the sector:
- Convenience remains king, with takeaway and fast food continuing to outperform
- Diversified income streams are becoming increasingly important
- Moderate but stable growth suggests cautious consumer spending rather than aggressive recovery
As economic pressures persist, the sector’s ability to balance affordability, convenience and experience will be critical in sustaining momentum through 2026.
While growth remains measured, the January figures indicate a sector that is adapting, and holding steady, in a challenging consumer landscape.
