Hospitality Market Monitor August 2025 Report

This report provides an analysis of the hospitality sector in Britain as of August 2025, focusing on the challenges faced by pubs, bars, and restaurants. It outlines the impact of recent government-led increases in employment costs, including new National Minimum and Living Wage rates, which have contributed to a significant number of site closures. The report indicates that the hospitality sector has experienced a net decline of 374 licensed premises in the first half of 2025, translating to two closures per day. It highlights the contrasting performance between food-led and drink-led venues, with food-led establishments suffering a 2.9% contraction, while drink-led venues have seen growth. The report also discusses the resilience of the pub sector, which continues to perform better than restaurants, and notes the potential for further closures and job losses due to ongoing economic pressures. The document concludes with insights into market trends and the future outlook for the hospitality industry.