Hospitality lost three sites a day during Q1, data finds

The number of licensed premises in Britain fell by 0.3% in the first quarter of 2026, which translated to about three venues per day, as businesses and consumers faced rising costs, according to the latest Hospitality Market Monitor from NIQ. 

According to the data, there were exactly 98,609 outlets at the end of March, representing a drop of 305 sites since December 2025.

Closures averaged 3.4 per day during the period, and marked the second consecutive quarter-on-quarter decline. NIQ says this suggests that momentum for hospitality failures is building across the country.

Business failures follow persistent inflation in labour, energy, and food and drink. At the same time, ongoing conflicts in the Middle East are expected to trigger further energy price rises.

No major hospitality channel recorded growth in the first quarter. Casual dining restaurants saw outlet numbers fall by 0.9% in three months, while bars also faced significant pressure.

The licensed hotel segment showed more resilience, as outlet numbers grew year-on-year. The sector is 4.7% smaller than in March 2020, compared with a 14.3% drop across all hospitality.

Hotels and holiday parks may benefit from an increase in domestic holidays this summer, following a reduction in household travel budgets and expected increases in international transport costs.

Karl Chessell, director at NIQ, said: “Soaring costs have taken a heavy toll on hospitality in the first quarter and forced hundreds of businesses to close, with distressing impacts for the operators and employees concerned. Confidence among leaders and consumers alike is low, and geopolitical crises are likely to cause more damage in the months ahead. 

“Many pubs, bars, restaurants and other outlets have shown remarkable resilience in the face of unprecedented challenges, but thousands are now nearing breaking point. Without targeted support, more closures can be expected over the rest of 2026.”