The UK’s licensed sector lost 977 venues in the 12 months to September 2026 as high costs and declining customer engagement pushed struggling venues into the red, prompting NIQ’s Karl Chessell to warn that despite pockets of growth, “the general direction of travel is obvious.”
Nearly 1,000 UK pubs, bars and restaurants closed during the 12 months to September 2026, as rising costs and reduced consumer spending power continue to lay waste to the hospitality sector.
Publishing its latest Hospitality Market Monitor, industry analyst NIQ revealed that 977 venues ceased trading during the period, equivalent to almost 19 sites each week and 1 percent of the country’s total.
“Net closures of nearly 1,000 licensed premises in the last 12 months highlight the pile-up of challenges facing hospitality,” said Karl Chessell, NIQ’s director of hospitality operators and food for EMEA.
“While there are encouraging pockets of growth, the general direction of travel is obvious, and the sector is now entering a critical couple of months. Meaningful support on this burden of costs is needed to protect thousands of vulnerable businesses from closure.”
Casual dining was one of the worst affected licensed sectors, shrinking 2.2 percent year-on-year, continuing a 23.4 percent contraction since 2020. However, holiday and caravan parks enjoyed a more positive period, with numbers up 0.7 percent.
“The figures come as hospitality businesses prepare for the crucial Christmas trading period amid continued cost pressures and subdued consumer confidence,” reported the Morning Advertiser.
“NIQ’s RSM Business Tracker has recorded sales growth below inflation for managed hospitality groups for 16 consecutive months, while its latest Business Confidence Survey with Zonal found just 37 percent of sector leaders were optimistic about their business prospects over the next year.”
Too little, too late
These latest closure figures certainly put last week’s Budget Statement into sharp focus. With so little offered in terms of real monetary impact, the Chancellor will come under more intense pressure, with the hospitality closure trend likely to increase particularly as his benefits, meagre at best, will not even kick-in for at least 9-12 months.
Which is far too little and way too late for what could be 1,000-1,200 more small hospitality businesses going under in the next year.
But what’s worse is that the Treasury number crunchers knew that anyway.
It was a Budget to buy time for the Chancellor – and that is time at least 19 plus businesses every week don’t have.
A rise in fall
NIQ survey said… “Net closures of nearly 1,000 licensed premises in the last 12 months highlight the pile-up of challenges facing hospitality…
Originally published on Coinslot on November 9, 2026. Republished with permission.