The number of pubs and other licensed premises in the UK stayed stable in June, but more closures are possible as businesses face rising energy costs and high inflation.
New research from consultancy CGA, by NielsenIQ and financial adviser AlixPartners, showed 106,000 licensed premises were operating at the end of June 2022, flat on March and last June.
According to the latest Market Recovery Monitor, there were 1,000 business closures in the hospitality sector in the second quarter, which were largely offset by new openings.
However, more closures are possible in the second half “as cost pressures mount for both businesses and consumers”, the report stated.
Sharp rises in food and energy prices, labour shortages, supply chain issues and inflation are expected to hamper businesses that have already struggled during the pandemic.
This week, industry bosses warned that rising energy prices could lead to mass business closures in the hospitality sector.
Karl Chessell, CGA’s director for hospitality operators and food in EMEA, said “many businesses have a bumpy road ahead”.
“Solid recovery is now under severe threat from a powerful combination of inflationary pressures and other challenges, and we are likely to see a lot more churn of openings and closures over the second half of 2022,” he said.
Independent venues have struggled to stay open, with the number of indy premises falling 0.4% in the past year compared to 1.8% growth in managed venues.
Restaurant numbers dropped 1.2% during the year, despite growth in casual dining and bar premises.
Especially hard hit was the City of London, which now has 14% fewer licensed premises than in March 2020.