The number of UK licensed premises permanently shutting their doors hit 305 during the first quarter of this year, equivalent to 3.4 every day, as rising energy and labour costs continue to impact hospitality businesses both large and small.
The latest Hospitality Market Monitor from NIQ has revealed that 305 UK licensed premises closed during the first quarter of this year, equivalent to 3.4 every day as rising costs continue to impact the viability of many SMEs.
The 0.3 percent fall follows a similar decline during the previous three month period, exacerbating concerns that many more venues will face closure without targeted support for the sector.
“It is a second successive quarter-on-quarter drop and suggests that momentum of closures in hospitality is starting to build,” reported Propel. “The closures, on top of the 382 that shut between September and December, means Britain has lost 0.7 percent of its licensed venues in the past six months.”
“Rising energy and food costs and the financial pressures on customers are added to the increases in employers’ national insurance contributions and higher business rates.”
As of the end of March, there were just 98,609 hospitality venues still operational across the country, with the casual dining sector one of the hardest hit, shrinking by 0.9 percent year-on-year.
“Soaring costs have taken a heavy toll on hospitality in the first quarter and forced hundreds of businesses to close, with distressing impacts for the operators and employees concerned,” said Karl Chessell, director of hospitality operators and food, EMEA at NIQ.
“Confidence among leaders and consumers alike is low, and geopolitical crises are likely to cause more damage in the months ahead. Many pubs, bars, restaurants and other outlets have shown remarkable resilience in the face of unprecedented challenges, but thousands are now nearing breaking point. Without targeted support, more closures can be expected over the rest of 2026.”
One glimmer of hope in the report’s findings was a growth in the licensed hotel segment, which is now just 4.7 percent smaller than in 2019, boosted by advance booking for Easter and summer holidays in the face of international travel concerns.
“With some household budgets for holidays running low, and more increases in travel costs expected, hotels, guest houses and holiday parks may be poised to benefit from an increase in staycations over the summer,” added Propel.
Closures on the rise
EMEA at NIQ said… “Soaring costs have taken a heavy toll on hospitality in the first quarter and forced hundreds of businesses to close, with distressing impacts for the operators and employees concerned…
Originally published on Coinslot on May 4, 2026. Republished with permission.