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21st October 2025

Hospitality numbers rise in third quarter but Budget threatens revival

Written by: Edward Waddell
Britain’s number of licensed premises has fallen by 0.6% in the last year despite modest growth in the third quarter of 2025, according to the latest Hospitality Market Monitor from CGA by NIQ.

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-19 crisis and the sustained high inflation and weak consumer spending that has followed.

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.

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.”