Number of UK hospitality firms surges 17% in five years

The hospitality industry has experienced growth during the past five years, according to new findings collated by Business Name Generator. 

Using data from the ONS latest report on UK business activity, the number of accommodation and food services businesses has risen by 17% in five years, resulting in an additional 25,000 new companies. From 2021 to 2022 alone, despite the pandemic over 8,000 hospitality businesses joined the industry.

The ONS analysis uncovers the industries that have shown the most growth in recent years. It appears that hospitality has experienced the fourth largest growth out of all UK industries in the last five years, ahead of sectors including retail, finance and agriculture.

Despite this increase in UK accommodation and food services businesses, the sector is set to continue facing challenges. According to a report by trade association UKHospitality, up to a third of UK hospitality businesses are at risk of closure despite achieving record sales in 2022.

More recently, UKHospitality has called on the government to give the support the sector needs in the upcoming Spring Budget. 

Chloe Chai, spokesperson from Business Name Generator, said: “The 17% increase in the number of companies in the UK hospitality industry is a positive sign of growth and resilience in the face of economic challenges. 

“However, as we look ahead to 2023, accommodation and food services businesses must remain vigilant and proactively address financial constraints to continue this upward trajectory. It’s important for companies to seek out new opportunities and adapt to the changing market to maintain this growth and stay competitive in the industry.”