At the end of March 2026, there were 98,609 outlets, which was 305 fewer than in December 2025, equating to an average of 3.4 net closures a day, according to the latest Hospitality Market Monitor from NIQ, powered by CGA intelligence.
In addition, this is a second successive quarter-on-quarter drop and suggests the momentum of closures is starting to build, the insight firm said.
This comes after operators were advised to expect increased prices on products such as beer, food and furniture due to rising oil and gas prices as a result on the ongoing unrest in the Middle East last month (March).
Earlier this month (April) operators were urged to monitor costs closely as the ongoing conflict in Iran raised concerns about food inflation, fuel prices and carbon dioxide supply.
Price warning
NIQ warned the ongoing conflicts are likely to trigger further price rises in energy-reliant areas in the short to medium term.
Moreover, the research showed none of hospitality’s main channels recorded growth in the first quarter of this year.
Casual dining venue numbers saw a 0.9% drop while bars were also particularly impacted by consumers spending less.
However, it was a slightly better picture for some wet-led sites such as high street and community pubs, which shrunk by 0.1% and 0.2% respectively, which the research suggested some consumers were prioritising casual drinking occasions over eating out.
Elsewhere, the monitor analysed the accommodation sector, which saw more positive figures.
Venue numbers in the licensed hotel segment grew year on year and was just 4.7% smaller compared to pre-Covid levels, compared to a 14.3% drop in all outlets.
Heavy toll
NIQ director of hospitality operators and food EMEA Karl Chessell said: “Soaring costs have taken a heavy toll on hospitality in the first quarter and forced hundreds of businesses to close, with distressing impacts for the operators and employees concerned.
“Confidence among leaders and consumers alike is low and geopolitical crises are likely to cause more damage in the months ahead.
“Many pubs, bars, restaurants and other outlets have shown remarkable resilience in the face of unprecedented challenges but thousands are now nearing breaking point.
“Without targeted support, more closures can be expected over the rest of 2026.”
