Around 11 licensed hospitality venues closed per week over past year

Britain’s licensed hospitality sector has seen nearly 600 net closures over the past year as businesses struggle with a tough trading environment.

The country had 99,296 licensed venues in September 2025, having recorded 572 net closures in 12 months, or 11 every week, according to the latest Hospitality Market Monitor from CGA by NIQ.

 

This marked a 0.6% drop in the past year, despite the sector reporting modest growth in the third quarter of 2025. 

 

It means there are now 15,812 or 14.2% fewer premises than in March 2020 before the coronavirus pandemic began. 

 

However, CGA said the latest quarter has showed there was some optimism about the sector’s future prospects. In the three months to September, Britain’s number of licensed premises rose by 0.6%—the Hospitality Market Monitor’s first quarter-on-quarter increase for 12 months, and only the third since mid-2022.

 

The numbers come as hospitality begins the run-up to the crucial Christmas trading period and awaits the Chancellor’s November Budget.

The Hospitality Market Monitor showed there has been 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—showing that entrepreneurs continue to be attracted to hospitality despite its many challenges.

 

The Monitor also showed the resilience of pubs and bars in 2025, which saw their numbers rise 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.

 

Karl Chessell, director - hospitality operators and food, EMEA at CGA by NIQ, said: “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. Well-run businesses continue to expand, and the confidence of independent venues is particularly encouraging. 

 

“These businesses are working exceptionally hard to navigate multiple challenges, and as the Budget nears they will be hoping for respite on their disproportionately high costs. Government support can help to nurture these green shoots of recovery, but failure to act risks thousands more closures and job losses.”

 

Recent closures have included Tom Brown’s Pearly Queen in Shoreditch, Phil Thompson’s Thompson St Albans and MeatLiquor in Leeds. BrewDog closed 10 UK bars earlier this year and confirmed it would make further job cuts this month.

 

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