Licensed hospitality sites edge up 0.6% in Q3

The number of licensed hospitality venues in Britain rose slightly by 0.6% in the three months to September, according to new figures from CGA by NIQ, though the sector remains smaller than before the pandemic. 

The data comes ahead of the chancellor’s November Budget and the key Christmas trading period, when operators hope for relief from high energy, food and wage costs that continue to squeeze margins.

CGA’s Hospitality Market Monitor found that the third quarter of 2025 saw the first quarterly rise in a year, and only the third since mid-2022. 

There were 99,296 licensed venues across Britain as of September 2025, compared with 99,868 a year earlier. The 572 net closures in the 12-month period – equivalent to about 11 per week – leave the national total 14.2% below the pre-pandemic level recorded in March 2020.

According to CGA, the figures point to a “tentative recovery” in independently-run pubs, bars and restaurants, which grew by 0.9% in the quarter after losing nearly a fifth of their sites over the past five years.

The report also highlighted the relative resilience of drink-led venues, with pubs and bars up by 0.1% year-on-year. In contrast, restaurant and other food-led sites fell by 1.7%, reflecting a wider pattern in sales data showing pubs outperforming restaurants so far in 2025.

Karl Chessell, director for hospitality EMEA at CGA by NIQ, said: “High costs and fragile consumer confidence have created a very difficult trading environment for hospitality in 2025, and these numbers show the toll they have taken on venues.

“Against that backdrop, a modest rise in sites in the third quarter shows the sector’s impressive resilience. Well-run businesses continue to expand and the confidence of independent venues is particularly encouraging.”

He added: “These businesses are working exceptionally hard to navigate multiple challenges, and as the Budget nears they will be hoping for respite on their disproportionately high costs. Government support can help to nurture these green shoots of recovery, but failure to act risks thousands more closures and job losses.”