Britain's licensed premises drop below 100,000

The number of licensed venues has fallen by 3.6% over the last 12 months to 99,916, according to the latest Hospitality Market Monitor from CGA by NIQ and AlixPartners. 

The total at the end of September 2023 marks the first time it has dropped below 100,000 in the monitor's history. The 3,766 drop over the 12 months is equivalent to more than 10 net closures every day. 

However, the pace of venue failures has slowed as the year has progressed. The Hospitality Market Monitor recorded a fall in licensed premises over the third quarter of 2023 of only 0.3% – equivalent to just under three net closures a day. 

The report flags a particularly robust quarter for the managed hospitality sector. In the three months to September, the segment achieved 0.5% growth compared to the 0.6% drop in the number of independently-run venues. Many of Britain's biggest city centres also saw a net quarter-on-quarter increase in sites, including London, Manchester and Edinburgh. 

Karl Chessell, director of hospitality operators and food at CGA, comments: "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 from business leaders and investors. Despite the contraction in size in recent years, the long-term outlook for hospitality remains very good."

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