Two premises closed every day for the first six months of 2025, the new Hospitality Market Monitor from CGA by NIQ and AlixPartners, the global consulting firm, shows.
The research reveals a total of 98,746 sites operating at the end of June — 374 fewer than at the start of the year. It equates to 62 net closures per month, or two per day. In the context of the overall size of the market, Britain’s number of licensed premises fell by 0.4% in the first six months of 2025.
The latest hospitality closures mean the sector is now 14.2% smaller (net) than it was at the start of the pandemic in March 2020, having recorded more than 16,000 net closures in the ensuing five-year period.
The new numbers are a setback for hospitality after a solid 2024, when site numbers were largely stable. The closures have followed the introduction of significant new employment costs in April, which have placed new pressures on site profitability. In absence of mitigation, these costs may trigger a new wave of company restructurings in the second half of this year.
The Hospitality Market Monitor, from CGA by NIQ and AlixPartners, reveals more trends in openings and closures across the hospitality sector, including a spotlight on the relatively resilient Manchester market. Of the ten British city centres with the most licensed premises, Manchester is the only one to have a recorded an increase in venues between March and June, with recent openings there featuring expanding London-based brands, as well as local operators and entrepreneurs.
The full report can be downloaded here.
• Greene King Pub Partners, the leased, tenanted and franchise division of Greene King, is on course to invest £27 million in its pub estate during 2025.
The Derby Arms, at Knowlesly, Liverpool
This latest investment — its biggest in recent years — follows significant capital expenditure of £23m in 2023 and again in 2024. It comes at a time when costs facing the sector are higher than ever, following a reduction in business rates relief for small businesses in April and rising employment costs.
Greene King Pub Partners operates more than 950 leased, tenanted, and franchised pubs, and has a long-standing track record of investment, with its pubs playing a key role in their local communities.
Earlier this year, Greene King Pub Partners announced that 94% of its estate is currently let out on substantive agreements — the highest occupancy rate among the UK’s biggest partnership pub businesses.
“We are incredibly proud of the continued investment we are making in our pubs,” said Dan Robinson, managing director of Greene King Pub Partners. “Hitting £27m of investment this year is a clear sign of our long-term commitment to supporting our partners and the communities we serve, especially at a time when pubs are facing rising costs.
“This sustained investment is part of our strategy to ensure our pubs remain vibrant, sustainable businesses at the heart of local communities — whether they are leased, tenanted, or franchise. We know how important pubs are to the social and economic fabric of the UK, and we’re proud to play our part in backing them.”
Additional cost pressures from government policy around National Insurance contributions and taxation, combined with tough market conditions, saw venue numbers fall in the first half of the year.
• Guinness-maker Diageo is targeting cost savings after revealing that operating profit for the year ending 30th June fell by 27.8% to $4.34bn. Guinness itself, however, delivered double-digit growth, and gained share in its three largest markets.
Interim chief executive Nik Jhangiani said the company was increasing its cost savings target by circa $125m, to circa $625m over the next three years.
