South Africa’s bar sales fell for the eighth consecutive month in January 2026, marking a 15.4% decline year-on-year in inflation-adjusted terms. In nominal terms, sales dropped by 10.7%.
Statistics South Africa has not provided a clear explanation for the decline, but several factors may be contributing. Stricter enforcement against drunk driving has led many to prefer drinking at home.
Alcoholic beverages in bars are also two to three times more expensive than at retail outlets. In addition, unlicensed shebeens, which are not captured in official surveys, continue to attract a portion of alcohol consumption.
Despite the ongoing fall, the pattern of bar sales remains inconsistent. For example, December, typically a peak month due to the festive season, saw a 22.8% year-on-year drop.
The last recorded increase in real bar sales occurred in May 2025, while July and August 2025 saw declines of 15.6% and 14.0% respectively.
In contrast, food sales continue to perform strongly. In January 2026, food sales rose by 7.1% year-on-year, reflecting South Africans’ and tourists’ continued appetite for dining out.
Food sales account for the largest portion of restaurant revenue, representing 87.5% of total sales, while bar sales contribute only 10.7%. Other income, such as cover charges, venue hire, and equipment rentals, makes up the remaining 1.9%.
The dominance of food sales means total revenue trends more closely mirror food rather than bar sales. Overall, 2025 saw total annual sales grow by 3.5% in real terms, recovering from a 1.7% decline in 2024.
The minor dips in food sales during February and June 2025 slightly impacted total sales, but the strong growth in food revenue helped offset the decline in bar sales.
While bars face ongoing challenges, the broader food and beverage industry continues to show resilience, providing a positive outlook for operators and investors alike.
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