The research shows there were just under 104,000 licensed premises at the end of September 2022—a net drop of 2,230 since June, which represents an average of just over 24 closures a day, or more than 150 per week. This latest decline leaves the licensed market with 11,426 (or -9.9%) fewer sites than March 2020.
Karl Chessell, CGA’s business unit director for hospitality operators and food, EMEA, said: “These numbers show how hospitality’s steady recovery from Covid-19 is now under severe threat from rising costs for businesses and consumers alike. The resilience and confidence of managed groups and their investors is impressive, and people’s appetite for eating and drinking out is undimmed.
“However, thousands of smaller businesses are now on a knife-edge and in need of financial support. Relief on energy bills has been welcome, but sustained backing and clarity of policy is needed if hospitality is to power the economic growth that the Government is chasing.”
The closures over the last quarter follow a sharp rise in prices in energy, food and labour. This trend looks likely to continue over the rest of 2022 without further Government support.
Kate Nicholls, chief executive of UKHospitality, added: “It is truly saddening to see this scale of losses over the last quarter. It’s not just the sites that the industry loses but the fantastic people involved and the huge value they add to the cultural and social fabric of a local community.
“There is no time to waste – once these businesses are gone, they are gone for good. This scale of losses cannot continue – it must be avoided at all costs.”