Britain’s hospitality sector loses 305 venues in the first quarter

Britain’s hospitality sector lost 305 venues in the first quarter of 2026, with bars and nightclubs among the hardest hit as rising costs continued to squeeze operators and weaken consumer spending on eating and drinking out.

The latest Hospitality Market Monitor from CGA by NIQ showed that Great Britain had 98,609 licensed venues at the end of March, down 0.3% from the previous quarter. That amounted to an average of 3.4 closures a day between January and March, following a similar decline in the final three months of 2025. Over six months, the country has now lost 0.7% of its licensed premises.

The report said many businesses are still dealing with higher labor, energy, food and drink costs, while inflation is also affecting how much consumers are willing to spend in pubs, bars and restaurants. Bars were the weakest segment in the quarter, falling 1.2% to 4,666 venues from 4,721 in December. That was also down 0.3% from a year earlier.

Bar-restaurants saw an even steeper quarterly decline of 1.8%, ending March with 3,338 sites. Nightclubs fell 1% over the quarter to 791 outlets and were down 4.2% from March 2025. Restaurants were more stable, slipping 0.2% in the quarter but rising 0.6% year on year. High-street pubs edged down 0.1% from the previous quarter and were up 0.2% from a year earlier.

Community pubs declined 0.2% in the quarter, while food pubs fell 0.4%. Casual dining restaurants dropped 1.8% in the period. The broader drinks-led venue category was down 0.2% from December and 0.3% from a year earlier.

Karl Chessell, director for hospitality operators and food at NIQ in EMEA, said the figures reflected both severe pressure on margins and a degree of resilience across the sector. He said net closures of 305 venues in three months were disappointing, but added that thousands of pubs, bars, restaurants and other outlets had held on despite weak sales and profits.

Chessell warned that more price increases could follow if conflict in the Middle East continues to affect costs. He said that without targeted support, more closures should be expected through the rest of 2026.