Hospitality Hang‑Ups: Energy‑Price Storm Shuts 1,600 Pubs & Bars in 2022
It’s not rocket science – the rising cost of gas, electricity, and groceries is putting the brakes on gin‑and‑toast gatherings across the UK. A fresh Hospitality Market Monitor from AlixPartners and CGA by Nielsen IQ states that in the last quarter of 2022 alone, 1,611 licensed premises had to say goodbye, wiping out a 1.6% contraction in just three months.
Close‑Up on the Numbers
- Nearly 18 venues closed every single day during Q4.
- Across 2022, 4,809 premises closed – that’s 4.5% of the total at the turn of the year.
- The second half of the year was the real freeze‑over: over 75% of the closures happened after June.
In plain English, the hospitality sector is now down by 13,037 sites compared with March 2020, when the pandemic began to hit. That’s a more than 10% drop in less than three years – a bumper‑kiss to the world of pubs, bars, and restaurants.
Why the Big Shutdown?
Energy prices, food costs, and other inflations have turned profit margins into a leaky bucket. Add on shaky consumer confidence, a handful of rail strikes, and a labour shortage that’s partiously undermining the industry, and you’ve got a recipe for trouble.
Independent venues ‑ the small, often family‑run establishments that felt the sting of Covid most keenly – are bearing the brunt. “Nearly nine in ten of the fourth‑quarter closures were in the independent sector,” a CGA executive said.
Voices from the Front Line
Karl Chessell, director for hospitality operators and food at CGA, remarked: “While Covid took a heavy toll, the energy crisis is doing an even bigger guff aw! A drop of more than 1,600 venues over three months feels like a heartbreak for the industry. Every one of those sockets represents job losses, and communities losing their social hub. Consumers are still hungry for a pint. The government’s got to step in and give these businesses a lifeline.”
And Graeme Smith, managing director at AlixPartners, added: “The last three years have been a roller coaster. Since March 2020, 13,037 site closures – that’s about 13 outlets disappearing every day. While some segments have held up, casual dining, nightclubs, and independents are taking the big hit. If the current pace of closures kept going, we’d see the licensed premise count dip below 100,000 sometime this year. The energy crisis could finish the job outright if governments don’t lend a hand.”
What’s the Take‑away?
Think of it as a stern reminder that businesses need to shift gears faster than a tape of vinyl in a pop‑corper’s garage. The crumbling ledger, combined with an economic pressure that’s relentless as a London drizzle, means the hospitality team needs to get a solid, targeted boost from the government before the next wave of closures takes its toll again.
In short: the pubs and eateries that keep the night life alive are at risk. They’re calling for help – it’s not just about brass and barrels anymore; it’s a fight to keep them all open and serving the community it loves most.
