In 2024, the landscape of licensed venues in the UK showcased remarkable stability.
According to recent findings from the Hospitality Market Monitor, a partnership between CGA by NIQ and Alix Partners, 4,078 venues closed their doors while 4,085 new establishments arose.
By the end of December 2024, the thriving hospitality scene encompassed a total of 99,120 operational establishments, including pubs, bars, restaurants, nightclubs, and hotels.
Positive Shifts and Yearly Comparisons
This data reflects a positive shift for the hospitality sector, especially when compared to the previous two years, which experienced notable declines: a 3.5% drop in 2022 and a 2.9% decrease in 2023.
Yet, the final quarter of 2024 told a different story.
Typically a busy season for hospitality, it saw a slight downturn with a 0.7% decrease in the total number of venues—an effect that translated to an approximate eight closures each day.
This period alone accounted for 748 closures between October and December.
Sector Resilience and Challenges
The director for hospitality operators and food for the EMEA region at CGA by NIQ highlighted the sector’s impressive resilience through various challenges in 2024.
However, he urged caution for what lies ahead.
The stabilization of overall venue numbers showcases the robustness of operators, yet the continuing turnover signifies that businesses must adapt to shifting consumer habits.
The significant net closures observed in the last quarter raised concerns about increasing operational costs, particularly after the Autumn Budget, which poses risks to the ongoing recovery in hospitality.
When we dig deeper into the data, it’s evident that certain segments, like pubs, bars, and social clubs, are faring better.
While establishments focused on food experienced a slight contraction of 0.7% year-over-year, venues that prioritize drinks enjoyed a small 0.5% uptick.
Regional Differences and Variations
Interestingly, independently owned food-centric venues recorded a growth of 1% throughout 2024.
In contrast, larger multi-site groups saw a more troubling decline of 3.2% in their food-led locations.
Regional differences also revealed a distinct narrative with venue closures.
Cities such as London, Birmingham, and Oxford faced significant downturns, while northern urban centers like Liverpool, Manchester, and Leeds showed slight growth.
This paints a picture of an evolving hospitality industry that varies significantly across the UK.
Source: Harpers
