Store Openings and Closures H1 2024 from accountancy firm PwC highlighted, the first half of 2024 saw more than two chain pubs close per day, which has been predominantly driven by a number of larger, less well capitalised operators exiting weaker sites, according to PwC.
The research referred to pubs being particularly exposed to energy and labour cost hikes combined with lower consumer demand as a result of the cost-of-living crisis alongside the trend of younger consumers drinking less and older customers drinking at home.
Restaurant perspective
Furthermore, the data showed chain restaurants also saw a rise in net closures although this was at half the rate of their worst performance during the pandemic in the first half of 2020.
Restaurants have been affected by many of the same cost and demand pressures as pubs albeit openings by more successful chains have offset closures by weaker players.
In fact, the report stated some cuisines, such as East Asian, have seen net growth in chain outlets to date this year.
Previous research
This follows data from Oxford Partnership earlier this year (July), which showed 84 outlets in the hospitality sector were lost from 1 June to 6 July, with suburban and urban areas hit the hardest.
Moreover, Lumina Intelligence’s latest UK Pub & Bar Market Report predicted closures in the pub market are set to be steeper than pre-Covid levels this year, driven by a range of contributing factors.
Business rates, alcohol duty and staff wages were cited as key drivers as making sites unviable for operators, exacerbated by consumer caution around spending for weaker sites with weaker peak trading not able to mitigate quieter periods.
The report also stated in 2024, the net closure rate is still ahead of 2019 with six shutting their doors on a weekly basis. The total number of outlets currently stands at 41,729.
