What’s threatening the hospitality industries revival?

There were 11 closures per week during September.

Further cost increased that could be imposed by the government after the upcoming November Budget announcement could hinder the revival in the hospitality industry, according to the latest Hospitality Market Monitor from CGA by NIQ.

The report found that Britain’s number of licensed premises declined year-on-year, even as the sector recorded modest growth in the three months to September

The report showed a 0.6% decrease in the total number of sites compared to the previous year, alongside a 0.6% increase during the third quarter, indicating tentative signs of stabilisation in the market.

The country had 99,296 licensed venues at September 2025, having recorded 572 net closures in 12 months, or 11 every week. It means there are now 15,812 or 14.2% fewer premises than at March 2020—the fallout from the COVID crisis and the sustained high inflation and weak consumer spending that has followed.

The numbers come as hospitality begins the run-in to the crucial Christmas trading period and awaits the Chancellor’s November Budget. While operators and investors will welcome third-quarter growth, thousands of businesses remain vulnerable to any further cost increases imposed by government.

The Hospitality Market Monitor highlights a tentative recovery of independently-run pubs, bars, restaurants and other licensed premises. After losing nearly a fifth of its sites in just five years, the independent sector grew by 0.9% in the third quarter—evidence that entrepreneurs continue to be attracted to hospitality despite its many challenges.

The Monitor also flags the resilience of pubs and bars in 2025. The number of these and other drink-led venues nudged up by 0.1% in the 12 months to September, while restaurants and other food-led sites dropped 1.7%. This pattern matches sales trends measured by the CGA RSM Hospitality Business Tracker, in which managed pubs have outpaced restaurants for growth in every month of 2025 so far.

“High costs and fragile consumer confidence have created a very difficult trading environment for hospitality in 2025, and these numbers show the toll they have taken on venues. Against that backdrop, a modest rise in sites in the third quarter shows the sector’s impressive resilience,” Karl Chessell, director - hospitality operators and food, EMEA at CGA by NIQ, said.