“Two hospitality venues closing every day is not just a statistic; it represents the hollowing out of our high streets and communities… This cannot continue.”

he UK’s hospitality sector has seen an alarming decline in the first half of 2025, with an average of two licensed venues closing every day, according to the latest Hospitality Market Monitor from CGA by NIQ and AlixPartners.

At the end of June, Britain had 98,746 licensed premises – 374 fewer than at the start of the year, representing a 0.4% drop in just six months. Since the start of the Covid-19 pandemic, the sector has contracted by 14.2%, equating to over 16,000 net closures in five years.

This downturn follows significant new employment costs introduced in April, including increases to national insurance contributions and taxation. Smaller, food-led businesses have borne the brunt, with a 2.9% contraction in the past year, while drink-led venues have grown by 1%.

While 2024 saw stability in site numbers, this year’s closures risk triggering further company restructurings. Kate Nicholls, chair of UKHospitality, warned:

“Two hospitality venues closing every day is not just a statistic; it represents the hollowing out of our high streets and communities… This cannot continue.”

Despite the challenges, Manchester stands out as the only major UK city centre to record growth between March and June, driven by both local entrepreneurs and expanding national brands.

For fish and chip businesses, these figures underline the importance of resilience, adaptability, and ensuring operations remain profitable despite mounting pressures.