Britain’s licensed hospitality sector hit with 1,800 closures in Q2 2026

Britain’s licensed hospitality sector has seen over 1,800 closures in the second quarter of 2026, according to recent data.

NIQ’s latest Hospitality Market Monitor revealed that while the number of licensed premises held steady during the period, with the total number of outlets at 98,564 at the end of June 2026 – just 0.2% below the level of June 2025 – this was due to high churn.

Between March and June, hospitality operators were faced with changeable consumer confidence and sustained inflation in costs, the effects of which were exacerbated by the Middle East conflict.

These pressures contributed to the closure of 1,839 outlets in the second quarter, the equivalent to around 20 sites per day.

That said, many of these closures were quickly transformed into openings, with 1,794 new sites recorded during the same period.

There has been particularly high churn in the bars sector, with around one in nine (515) out of the total number of bars across Britain (4,695) having launched within the last 12 months.

And in the second quarter alone, 191 bars opened, the equivalent to 15 new sites per week.

Britain’s bar sector has now increased in size by 1.4% in the last year and by 3.1% since the pre-Covid benchmark of March 2020.

The number of licensed premises in city centres has also risen by 0.4% despite the sector as a whole having shrunk by 0.2% in the last 12 months. Liverpool and Brighton were named as the cities with the fastest growing number of hospitality outlets.

Karl Chessell, director - hospitality operators and food, EMEA at NIQ, said: “At a topline level it was a stable second quarter of 2026 for hospitality, but a flat number of outlets conceals a lot of changes and challenges beneath the surface. Fast turnover is a concerning sign of the fragility of businesses, but it is also a welcome indicator of the confidence of entrepreneurs and investors. With inflation and low spending confidence set to persist, stability in numbers will be hard to sustain.

“While the new Prime Minister’s announcement of cuts to business rates for pub and clubs may prove a lifeline for some businesses on the edge, the sector still needs additional support to achieve long term stability.”

The Caterer rounded up initial reaction to prime minister Andy Burnham’s business rates relief last week. While some praised it as a “welcome first step”, many expressed disappointment it did not go far enough.