Every two days a hospitality venue in London closes its doors for good, according to the latest data from trade body the CGA.
It’s a trend that started in March 2020, when Covid first reared its ugly head in the UK, and continued through to 2023.
Around 540 pubs, restaurants and clubs shut during this period representing a 15.6% net decline in licensed premises in the capital, the Hospitality Market Monitor by the CGA and AlixPartners found.
Only Aberdeen and Birmingham have been hit harder with false of 18.9% and 17.1% respectively.
In London, at least, the downward appears to be slowing thanks to an uptick in consumer spending and a return of office workers.
“London had a net decline of only 1.0% of its licensed premises in the first quarter of 2023, after a dip of just 0.2% over the previous three months,” the report said.
Sales at venues in the City are now growing two times faster than in the rest of the UK.
One reason for this could be the increase in managed sites and the disappearance of independents.
Some 583 small, mostly family-run, venues have closed in the year to March 2023, representing a 5.9% drop in the sector.
On the other hand, managed venues, like JD Wetherspoon PLC (LSE:JDW) or Nando’s, have grown by 1.5% in the same period.
There were 54 new openings recorded, largely driven by a bump in drink-led venues like Fuller Smith & Turner PLC (AIM:FSTA) pubs.
Graeme Smith, managing director at consultancy firm AlixPartners, believes more support is required for independents, which he sees as “the lifeblood and entrepreneurial driving force of the sector”.
He said: “Government support [needs] to be extended, especially on energy costs, if small (often family-owned) businesses are to survive.”