Britain’s total number of licensed premises has fallen by nearly a third over the last two decades, according to new figures from trade body UKHospitality.
Balancing closures against openings, the net effect is that more than 44,000 outlets have been lost since 2003, equivalent to just over six closures every day for the last two decades.
UKHospitality said that the figures, compiled in partnership with CGA by NIQ, reflected the ‘sustained periods of pressure’ the industry has been under, most recently exacerbated by soaring inflation, rising energy bills and workforce challenges.
With those pressures in mind, UKH is now calling on the Westminster Government to announce urgent measures to support hospitality businesses, with a particular focus on rates, VAT and recruitment.
The latest industry figures are evidence of the ‘very changed landscape’ that has emerged in the space of just two decades.
At the end of September 2023, the total number of licensed premises in Britain stood at 99,916 —down 30.6% from the figure of 144,055 recorded by CGA in 2003.
The largest losses have been drink-led pubs, bars and nightclubs, which have seen a net decline of 43.6% over that period. But the last 20 years have also seen an uplift in managed sites, which have performed better than their independent counterparts, up 14.6% versus a decline of 32.9%.
The same period has also experienced an increase in eating venues, up 14.8%, mainly in the form of casual dining restaurants and food-led pubs, reflecting a shift in consumer preferences towards dining out.
CEO of UKHospitality, Kate Nicholls, 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,” she suggested. “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.”
CGA by NIQ’s business unit director for hospitality and food, Karl Chessell, 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.”
