Hospitality closures slow in Q1
Food-led site numbers increased by 0.1% in the first quarter of 2024, compared to drops of 0.7% and 0.4% in the drink-led and accommodation businesses
Closures in Britain’s hospitality sector slowed from eight sites a day in 2023 to four a day in the first quarter of 2024, according to data from CGA.
The sector saw a 0.4% decline in total numbers between the start of January and the end of March, the third smallest quarter-on-quarter drop since the start of the pandemic.
The current total of 98,745 hospitality venues means the market is down by 2.5% year-on-year, meaning one in 40 venues has shut in the past 12 months.
However, the latest three-month snapshot provides cautious confidence that a slight easing of cost pressures may be starting to put the brakes on business closures.
Food-led site numbers increased by 0.1% in the first quarter of 2024, compared to drops of 0.7% and 0.4% in the drink-led and accommodation businesses.
Kate Nicholls, chief executive of UKHospitality, said: “Four hospitality venues closing a day is still four too many. These closures rob communities of all the benefits hospitality serves up for Britain – the crucial job opportunities, local economic growth and hubs for communities.
“However, this data gives some signs to suggest the sector is beginning to recover. A slight growth in both casual dining and independent restaurants indicates a potential growth in an appetite for investment in the sector.”
She added: “While nascent, these are positive signals, albeit at a time when the sector continues to face tough economic challenges, which continue to put at risk the many benefits hospitality delivers to Britain.
“The closure rate may have halved, but we’re still losing venues and that is not acceptable. It remains the case that the cost burden for the sector is too high, and we need to see those costs rebalanced and reduced, if we are to build on some of the growth we are seeing.”
