The rate of hospitality business closures in the UK has slowed in the first months of 2024, as easing cost inflation provides some relief to the sector. However, new data reveals that one in 40 pubs, restaurants, bars, and hotels have permanently closed over the past 12 months.
Figures from CGA by NIQ and AlixPartners show that 368 hospitality sites—the equivalent of four a day—closed in the first quarter of the year. This brings the total number of hospitality firms in the UK to 98,745 at the end of March, a drop of more than 2,000 compared to the same period last year.
Despite the decline, the rate of closures has slowed significantly, and there are signs of resilience in the sector. Food-led venues saw a slight increase of 0.1% in the quarter, while drink-led venues and accommodation businesses decreased by 0.7% and 0.4% respectively.
Karl Chessell, a director at CGA by NIQ, said: “After a very challenging few years, these numbers give grounds for tentative optimism that hospitality closures will slow as 2024 goes on. While thousands of businesses remain fragile, a downward trend in inflation should hopefully raise the confidence of operators, consumers and investors alike, and protect more venues from closing the doors.”
Graeme Smith, managing director at AlixPartners, added: “While the number of venues continues to tick down overall, the rate has slowed significantly, and hopefully this is a further sign of the easing of some of these big market pressures. Operating conditions are clearly not easy, but the volatility of recent years has calmed.”
