Hospitality insolvencies eased but remained historically high
1,706 accommodation and food service companies closed in H1 2025.
The number of hospitality businesses entering insolvency eased slightly in the first half of 2025, yet remained historically high, reflecting challenging trading conditions for the industry, according to the Buchler Phillips Hospitality Index.
Some 1,706 accommodation and food service companies, including hotels, restaurants and pubs, closed in the six months to June 2025, down 5.5% from 1,806 for the first half of 2024, according to government data.
Q2, however, saw a 6.5%% increase over Q1, with 880 companies in trouble. Offering little cheer, the number of monthly hospitality insolvencies has remained consistently over 270 so far this year.
The Buchler Phillips Hospitality Index of insolvencies, which has tracked monthly figures since January 2014, rose from 181.2 in March to 197.3 in June. It peaked in August 2023 at 273.4 with a spike in the sector’s business closures.
High-profile operators closing high street units have included Italian restaurant chain Gusto, bar owner Brewdog, 19-strong pubs group Oakman Inns, pizza giant Papa Johns, and Busabai Eathai, created by Wagamama founder Alan Yau.
“Hospitality businesses face an estimated £3.4b of additional expenses, not least because of the increase in employers’ National Insurance contributions. Industry leaders have warned that potentially higher mandatory pension contributions for staff could be the final nail in the coffin for some companies,” Jo Milner, managing director of Buchler Phillips, said.
