Eight hundred licensed premises lost in Q4 2023

The number of licensed premises in Britain dropped by 0.8% in the fourth quarter of 2023, according to the latest Hospitality Market Monitor from CGA by NIQ and AlixPartners. 

The figure is equivalent to 803 net closures in three months, or nearly nine per day. It represents an acceleration of closures from the third quarter of last year, when numbers fell by only 0.3% – but it is much healthier than the average of 24 closures a day that the Monitor recorded in mid-2022 when post-Covid business failures were at a peak. 

The Monitor shows that Britain had 99,113 licensed premises in December 2023 – almost 3,000 fewer than 12 months prior, and 16,000 fewer than March 2020, the point at which the coronavirus arrived in the UK. The independent sector has been hit particularly hard, with numbers falling by a sixth (16.6%) since early 2020. 

'More closures can be expected'

Karl Chessell, business unit director for hospitality operators and food at CGA, comments: "Given all the pressures on hospitality in recent months, it is no surprise to see more contraction in site numbers in late 2023. More closures can be expected in the coming months as inflation and labour issues continue to put strain on businesses, and independent operators are particularly vulnerable.

"However, CGA's data points to solid trading for managed pubs, bars and restaurants, and likely drops in inflation and interest rates will hopefully ease costs and loosen people's spending as 2024 goes on. Whether or not this leads to a slowing of closures and a trigger for new openings remains to be seen," he concludes. 

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