Hospitality closures hit three per day in ‘tough’ first quarter

The overall number of licensed venues across the UK fell by 0.3% in the first three months of the year, according to NIQ’s Hospitality Market Monitor.

This decline, which represents the net closure of 3.4 hospitality venues per day in the first quarter of 2026, marks the second consecutive quarter-on-quarter decline in licensed premise numbers.

At the end of March there were 98,609 hospitality venues overall – down 305 in net terms. The causal dining restaurant sector was most severely impacted by closures over the period, down 0.9% year-on-year.

By contrast, the licensed hotel segment rose year-on-year and is now just 4.7% smaller than pre-Covid, compared to a 14.3% drop in all outlets.

Karl Chessell, director - hospitality operators and food, EMEA at NIQ, said: "Soaring costs have taken a heavy toll on hospitality in the first quarter and forced hundreds of businesses to close, with distressing impacts for the operators and employees concerned.

“Confidence among leaders and consumers alike is low, and geopolitical crises are likely to cause more damage in the months ahead. Many pubs, bars, restaurants and other outlets have shown remarkable resilience in the face of unprecedented challenges, but thousands are now nearing breaking point. Without targeted support, more closures can be expected over the rest of 2026.”