A total of 3,353 accommodation and food service businesses, including pubs, restaurants and hotels, entered insolvency in the 12 months to December 2025, down 3.2% from 3,465 in 2024, according to government data analysed in the Buchler Phillips Hospitality Index.
Consistent insolvencies
Q4 saw a modest 2.4% improvement on Q3, with 786 companies entering insolvency. However, aside from December’s total of 204, monthly failures have consistently remained above 220 throughout the year.
The Buchler Phillips Hospitality Index, which tracks insolvencies against a January 2014 base of 100, softened from 191.9 in September to 187.3 in December.
High profile hospitality casualties in Q4 included Bistro Live, Leon Restaurants, The Coconut Tree and Pizza Hut franchisee DC London.
‘Little respite’
Jo Milner, managing director at Buchler Phillips, said: “There is no sign of hospitality budging from near the top of the insolvency table in the foreseeable future. As last year’s Budget changes kick in fully, even last-minute government measures will provide little respite for the stricken sector.”
The latest figures follow a series of volatile updates over the past six months. In November, official data showed hospitality insolvencies had flattened month on month in September, with operators described as “holding on” in the hope of stronger Christmas trade.
However, separate analysis from Price Bailey earlier in the autumn highlighted a sharp spike in pub insolvencies following April 2025’s tax and wage increases, with June recording the highest monthly figure in more than a decade.
The insolvency data also lands against a backdrop of sustained employment pressure in the sector.
Operators are facing an estimated £3bn to £4bn in additional annual costs, including higher employer national insurance contributions, with more than 750,000 hospitality employees brought into the NIC threshold for the first time.
Recent ONS figures showed almost 9,000 hospitality jobs were lost in December alone, while S&P Global data indicated employment across the services economy is falling at its fastest pace in more than a decade.
It also comes amid global restructuring in the drinks market, with Heineken announcing last week up to 6,000 job cuts following weaker beer volumes.
Despite a marginal improvement in insolvency numbers year on year, the latest figures suggest trading conditions remain fragile as cost pressures continue to weigh on operators.
