The country had 99,296 licensed venues at September 2025, having recorded 572 net closures in 12 months, or 11 every week. It means there are now 15,812 or 14.2% fewer premises than at March 2020—the fallout from the COVID crisis and the sustained high inflation and weak consumer spending that has followed.
However, the latest quarter has brought reasons for cautious optimism about 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-in to the crucial Christmas trading period and awaits the Chancellor’s November Budget. While third-quarter growth will be welcomed by operators and investors, thousands of businesses remain vulnerable to any further cost increases imposed by government.
The Hospitality Market Monitor highlights 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—evidence that entrepreneurs continue to be attracted to hospitality despite its many challenges.
The Monitor also flags the resilience of pubs and bars in 2025. The number of these and other drink-led venues nudged up by 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.”
The Hospitality Market Monitor from CGA by NIQ and AlixPartners provides exclusive quarterly analysis of the licensed sector across Britain, with breakdowns of openings and closures by region, channel, tenure and more. Its expert analysis of trends and developments helps operators, suppliers and investors assess opportunities and challenges across the sector. Download the full report here.
