Closures slow after licensed premises drop below 100,000
In the three months to September 2023, the managed hospitality sector achieved 0.5% growth, in contrast to a 0.6% drop in the number of independently-run venues
The number of licensed premises in Britain has fallen by 3.6% over the last 12 months to 99,916 sites, according to data from CGA and AlixPartners.
The total at the end of September 2023 marks the first time it has dropped below 100,000 since records began.
The 3,766 drop over the 12-month period is equivalent to more than ten net closures every day.
However, the pace of venue failures has slowed as the year has gone on as licensed premises only dropped 0.3% in Q3 which is equivalent to just under three net closures a day.
In the three months to September 2023, the managed hospitality sector achieved 0.5% growth, in contrast to a 0.6% drop in the number of independently-run venues.
Karl Chessell, CGA by NIQ’s director – hospitality operators and food, EMEA, said: “It is pleasing to see a slowdown in closures over the third quarter of 2023, though whether it is the beginning of a sustained positive trend or a lull remains to be seen.
“High inflation and interest rates are keeping a lid on consumer confidence, but the healthy growth in venues from multi-site managed groups is a positive sign of confidence from business leaders and investors. Despite the contraction in size in recent years, the long-term outlook for hospitality remains very good.”
Graeme Smith, AlixPartners’ managing director, added: “While it is never nice to see the number of licensed premises in the UK continue to fall, what the figures don’t show is that, whilst the sector has contracted overall, this masks an evolution of the market as it has become more varied and more innovative. In addition, the standard of offer across the full spectrum of the hospitality industry has never been higher.
“Recent figures show that the contraction in site closures has slowed, this comes after a period of significant estate consolidation. It also marks a period when many operators have tentatively returned to the expansion trail, coupled with the continued entry of new concepts and international brands into the sector. If consumers continue to spend on hospitality and experiences in the face of more challenging economic conditions, we could see site numbers begin to expand again in 2024.”
