Hospitality industry sees more than 12 closures a day as almost 4.600 venues close in a year

Tuesday, May 2, 2023
The UK experienced a net decrease of 4,593 licensed businesses in the last year to March 2023 according to the new Hospitality Market Monitor conducted by CGA by NIQ and AlixPartners

The decrease corresponds to 4.3% of the industry opened since March 2022 and an average of 12.6 closures per day.

However, during the first three months of 2023, the rate of net closures had slowed down to 756, an annual average of 8.4 closures.

Independent businesses carry the brunt of closures, posting a 5.9 per cent fall in figures in the past 12 months, while groups under management have seen growth of 1.5 per cent over the same period, including 0.3 per cent for the first three months of 2023.

In the three years since the outbreak of the pandemic, the independent sector has shrunk by 14.1%, more than four times as much as the 3.3% under management.

Restaurants were also experiencing a 7.8% drop, much sharper than restaurants (a 2.2% decline) and upper-floor pubs (a 2.5% drop).

"Each of the 4,593 closures over the last 12 months represents a sad loss of jobs and the permanent withdrawal of a community asset," - Karl Chessell

Karl Chessell, National Cyber Security Centre's director for Hospitality Operators and food, said:"Each of the 4.593 closures over the last 12 months represents a sad loss of jobs and the permanent withdrawal of a community asset."

Graeme Smith, AlixPartners executive director said the "stabilizing picture extends to London, the largest leisure market hardest hit by Covid-19," and it's clear that many UK city centres are returning to something similar to their earlier vibrancy.