The British hospitality sector experienced a challenging first half of 2023, with a 1.1% contraction in licensed premises due to economic pressures and high inflation. Despite this, the industry shows signs of resilience, with managed pubs, bars, and restaurants recording consistent growth and an increase in leaders' optimism, as indicated by the Coffer CGA Business Tracker and the CGA and Fourth Business Confidence Survey.
The Hospitality Market Monitor reports that Britain had 100,176 licensed premises at the end of June, a net decline of 1,139 sites over Q2 2023. However, closures have reduced compared to H2 2022, and many vacated units have been swiftly reoccupied by emerging multi-site groups.
While casual dining, sports and social bars, and nightclubs experienced significant declines, other channels such as food-led pubs, high street pubs, and community pubs recorded fewer closures. City centres have also shown positive results with an influx of office workers and visitors, with several cities achieving modest growth. Managed venues were the strongest performance, with only 0.4% contraction in site numbers versus a 1.5% drop in the independent sector.
The industry, although facing challenges, presents opportunities for adaptable, customer-focused businesses demonstrating growth, thus instilling a sense of optimism for the future.