After a prolonged period of stagnation, there's been an uptick in the number of UK establishments with liquor licenses, including pubs, bars, restaurants, clubs, and hotels.
Sector Still Far Below Pre-Pandemic Levels
Although there has been a noticeable increase in the number of licensed pubs, bars, restaurants, clubs, and hotels, the sector as a whole still lags behind its pre-COVID-19 peak, with total sites currently standing at around 13.8% below their pre-pandemic levels in March 2020.
Themed Bars Show Strong Growth
A particularly resilient segment within the sector has been themed bars, including competitive socialising venues and bars that boast unique themes, which have demonstrated a remarkable growth rate of 28.9% over the course of the last year.
The upward trend in the sector aligns with other encouraging signs observed in 2024, such as steady increases in sales revenue coupled with easing pressures on consumer spending due to lower inflation and reduced household bills.
A Welcome Sign of Confidence
According to Karl Chessell, director of hospitality operators and food at CGA by NIQ, EMEA, this upward trend is a clear reflection of the increasing confidence being demonstrated by business leaders and investors in the UK's hospitality industry.
The return to outlet growth reflects the stabilisation of the market and paints a more positive picture for businesses and investors alike.
'These numbers are a welcome sign of the confidence of business leaders and investors in hospitality.'
Karl Chessell
While the recent quarter-on-quarter increase in outlet growth is a welcome sign, a more nuanced view emerges when examining longer-term data, which indicates that outlet numbers have actually declined by about 1.0% or 969 from their levels in June 2023.
Industry specialists continue to express optimism regarding the hospitality sector's future prospects, attributing this confidence to the stabilization of the market and its potential for full recovery.