However, analysis of the Government figures by RSM UK also showed insolvencies fell by almost a fifth (18%) from 273 in January 2025.
The audit, tax and consulting firm outlined how hospitality continues to be in the top three sectors experiencing the highest number of insolvencies.
This comes after data from the NIQ RSM Hospitality Business Tracker showed managed operators across pub, bar and restaurant groups faced a 0.1% fall in like-for-like sales during January this year with trade hit by prolonged wet weather and the traditional downturn in people celebrating during the first month of the year.
Weather impact
RSM UK partner and head of leisure and hospitality Saxon Moseley described the beginning of the year as a “tough start” for the sector.
He said: “Most hospitality operators held on at the end of last year to capitalise on Christmas trading before having to assess their options in January.
“The persistent wet weather and fragile consumer confidence has meant it’s a tough start to the year for the industry, with the NIQ RSM Hospitality Business Tracker showing flat like-for-like sales, tipping some into insolvency.”
He urged operators to save and boost efficiency while keeping customers at the heart of the business.
Hardest hit
“The hospitality sector consistently features in the top three industries experiencing the highest number of insolvencies, highlighting it’s one of the hardest hit by relentless cost increases such as higher taxes, national minimum wage and inflation,” Moseley added.
“While it’s encouraging to see a drop in hospitality insolvencies year-on-year, this may be in part due to the sector shrinking overall, as the challenging trading environment makes it difficult to not only enter the market, but to compete.
“With more headwinds to come, operators must act now to preserve cash, explore cost-cutting options and most important, protect the customer experience to keep people coming through the door.”
