Hospitality sector sees four venues close per day

26 January, 2026

New industry data reveals a tough end to 2025 for the UK’s hospitality sector, with an average of four licensed venues closing every single day in the final quarter of 2025.

According to the latest figures, 382 net closures were recorded between October and December 2025, leaving the total number of hospitality sites in Britain at 98,914 by the end of December 2025.

While the sector had shown resilience earlier in the year—growing slightly in the first nine months—casual dining and restaurants were hit hardest in the autumn and winter months, with nearly 19 closures per week in these segments.

Across the broader food-led hospitality market, site numbers fell by 0.8% in the quarter, reflecting the ongoing challenges of inflationary cost pressures and weaker consumer spending. Bars fared relatively better, recording modest growth as more customers chose to go out for drinks rather than meals.

Industry analysts say the uptick in closures during the crucial festive trading period underscores the strain of rising operating costs—including labour, energy and business rates—on venues that rely on strong year-end sales to build cash reserves for the quieter months.

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