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Despite closures, restaurant growth offers some optimism

08/05/2024

UKHospitality said that hospitality costs must be reduced to prevent closures and capitalise on growth opportunities.

The latest Hospitality Market Monitor from CGA by NIQ and AlixPartners shows that closures in Britain’s hospitality sector slowed from eight sites a day in 2023 to four a day in the first quarter of 2024.

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The number of food-led sites grew by 0.1% in the first quarter of 2024, with casual dining and independent restaurants seeing growth of 0.5%.

Kate Nicholls, Chief Executive of UKHospitality, said: “Four hospitality venues closing a day is still four too many. These closures rob communities of all the benefits hospitality serves up for Britain – the crucial job opportunities, local economic growth and hubs for communities.

“However, this data gives some signs to suggest the sector is beginning to recover. A slight growth in both casual dining and independent restaurants indicates a potential growth in an appetite for investment in the sector.

“While nascent, these are positive signals, albeit at a time when the sector continues to face tough economic challenges, which continue to put at risk the many benefits hospitality delivers to Britain.

“The closure rate may have halved, but we’re still losing venues and that is not acceptable. It remains the case that the cost burden for the sector is too high, and we need to see those costs rebalanced and reduced, if we are to build on some of the growth we are seeing.”

About UKHospitality:

UKHospitality is the leading trade body for hospitality, representing every corner of the sector. We represent more than 130,000 venues, from pubs, bars and restaurants to hotels, indoor leisure and contract catering.

We work on behalf of a sector at the heart of the everyday economy; contributing £93 billion annually to the economy, generating £54 billion of tax for the Treasury and employing more than 3.5 million people as the third largest employer in the UK.

Our members benefit from our dedicated campaigning to empower an environment for hospitality to thrive, in addition to expert insight, specialist support helplines and guidance on the key issues facing hospitality businesses.

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