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Surge in Pub Closures Marks Decade’s Highest Quarterly Count

In recent times, the UK’s hospitality landscape has experienced a significant shift, as the latest statistics reveal a pronounced upswing in the closure of pubs. The numbers, demonstrating the highest quarterly closure figure in over ten years, highlight the challenges faced by the nation’s pub industry. This development underscores the need to delve into the factors contributing to this trend and explore potential strategies to safeguard the future of these beloved establishments.

Alarming Statistics: A Reflection of Changing Dynamics

Insights from Price Bailey, leading chartered accountants, highlight a dire scenario in the UK’s hospitality sector. Matt Howard, Head of Price Bailey’s Insolvency and Recovery Team, delivers a stark message, stating, “Pub closures are rising at an unprecedented rate.” He attributes this trend to a “perfect storm” of soaring inflation and high interest rates, especially impacting struggling pubs. Aggressive interest rate hikes have compounded challenges, pushing many pubs “into the red.” The statistics reveal a bleak picture: 223 pub businesses entered insolvency in Q2 of 2023, up from 200 in Q1. Moreover, 729 pubs permanently closed in the last year, marking an 80% surge from the previous year’s 405 closures. As the hospitality sector battles these adversities, Price Bailey’s insights emphasize the urgent need for industry-wide collaboration and innovative strategies to safeguard the future of these vital establishments.

Source: https://www.morningadvertiser.co.uk/Article/2023/08/07/number-of-pub-closures-in-2023-second-quarter