Hospitality venues are shuttering at a faster rate after losing out on around £350 million due to recent rail strikes, industry leaders revealed.
In the last three months of 2024, more than 800 hospitality venues shut for good, representing nearly nine closures per day, according to the CGA.
Adding to the £4 billion already lost due to past strikes, the Night Time Industries Association (NITA) said it’s “deeply concerned” about the negative effects of the recent set of walkouts, organised by Aslef, the train drivers' union.
NITA argued the increase in strikes over the past years had added to the multitude of industry headwinds such as rising inflation and weaker consumer spending.
“Our industry is on the brink of collapse, with billions of lost revenue, increased taxes, and the devastating closure of numerous businesses,” NITA chief executive Michael Kill said.
Karl Chessell, a director at CGA, said: “Given all the pressures on hospitality in recent months, it is no surprise to see more contraction in site numbers in late 2023.
“More closures can be expected in the coming months as inflation and labour issues continue to put strain on businesses, and independent operators are particularly vulnerable.”
Kate Nichols, boss of UKHospitality, argued the damage of rail strikes on hospitality businesses is exacerbated in the quieter months.
Emma McClarkin at the British Beer and Pub Association added: “There is absolutely a financial cost to the country's pubs, who operate on narrow margins and need all the footfall they can get, especially in January.”