New figures from UKHospitality, in partnership with CGA by NIQ, reveal that more than 44,000 licensed premises have closed since 2003, a drop of 31%, and that these losses are being driven by drink-led pubs, bars and nightclubs, which have seen a net decline of 43.6%.
The report also highlights that the hospitality sector continues to grow its workforce, suggesting that some of the losses of venues are offset by larger sites and particularly more food-focused businesses – managed sites have performed better than their independent counterparts, up 14.6%, while eating venues have also grown, up 14.8%, driven by casual dining restaurants and food-led pubs.
However, according UKHospitality , this shows a very changed landscape in the space of just two decades. They say that the the figures “highlight the seismic changes in hospitality and the sustained periods of pressure the industry has been under, more recently exacerbated by soaring inflation, rising energy bills and workforce challenges.”
Kate Nicholls, CEO of UKHospitality, said, “Given the shocking number of hospitality business closures exposed by these new figures, the last thing the sector needs is the potential £1 billion bill as a result of the business rates hike due in April. Our industry has proved time and time again that, with the right conditions, it can drive national economic growth, invest in local communities and create jobs at all levels.
“The Autumn Statement is an opportunity to extend the current business rates relief and freeze the current multiplier. In doing so, it can not only save more local and national businesses from closure but enable investment and growth. We also continue to ask the Chancellor to consider more medium- to long-term measures to support the industry, such as reviewing the rate of VAT for hospitality and reforming the apprenticeship levy to give businesses more control and flexibility over funding.”
Michael Kill, CEO of NTIA, commenting on the report, said, “The data unequivocally illustrates the sector’s catastrophic predicament, with a growing number of closures over the past year throughout the United Kingdom.”
“Frustration and anger are mounting among industry leaders and business owners within the sector. The government and the Chancellor’s persistent focus on reducing inflation through long-term strategies, despite the lack of tangible results, will inevitably impact a general election due to the perceived ignorance on their part.”
Kill emphasises the urgency of the situation, saying, “We are running out of time, and the feeling of being disregarded is taking its toll. To ensure the survival of these businesses, the Chancellor must extend business rates relief and reduce VAT to 12.5%. This is a matter of survival, not profit.”
Karl Chessell, CGA by NIQ’s business unit director – hospitality operators and food, EMEA, said, “These figures show the steady contraction of Britain’s licensed premises over a 20-year period and that has accelerated in recent years with the triple whammy of Brexit, COVID and spiralling costs. But while the closures have negatively impacted communities and livelihoods, some trends have been positive, like the dramatic increase in the quantity and quality of restaurants and the success stories of multi-site operators. Demand for eating and drinking out is still strong and hospitality has a key role in connecting all our communities. The right government support is needed to ensure businesses can survive and help drive our economic recovery.”