US EditionHospitality closures soar in final months of 2025 ahead of tax hikes
Rising costs and tax pressures led to 382 net closures in UK hospitality during Q4 2025, with restaurants and casual dining accounting for 241 of these, NIQ data shows.
- In the final three months of 2025, NIQ recorded 382 net closures in UK hospitality businesses, leaving 98,914 sites at the end of December.
- Experts attributed the drop to continued inflation in major costs and fragile consumer confidence during hospitality's most important trading period when firms usually build cash reserves.
- The number of restaurants slid 1% between September and December, while casual dining fell 1.8%, representing 241 closures; bars rose by 1% as customers spent more on drinks.
- Despite earlier growth, the year closed with 382 net closures after slight growth in the first nine months of the year, while business confidence and sales growth remain weak amid a challenging 2026 outlook.
- Industry bosses warn most firms face higher tax payments from next year due to business-rates changes, while the Government plans additional support for pubs as hotels and music venues warn of closures or price rises.
25 Articles
25 Articles
Hundreds of hospitality firms close as cost pressures take toll
The “relentless” increase in operating costs put hospitality businesses under increasing pressure in the final quarter of last year, industry figures suggest. According to consumer intelligence firm NIQ, there were 382 fewer licensed premises at the end of December than there were three months prior, equivalent to four closures per day. Casual dining sites and restaurants were particularly hard hit, recording 241 closures over the period, while…
Hospitality closures accelerate in final quarter as costs rise
British licensed premises numbers fell 0.4% in the last three months of 2025 as inflation and weak consumer confidence impacted the sector, according to the latest Hospitality Market Monitor from NIQ. At the end of December there were exactly 98,914 licensed sites in Britain, representing 382 fewer sites than in September. The decline, which is equivalent to more than four net closures per day during the fourth quarter, marks a reversal for th…
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