Powered by CGA intelligence, the report revealed that at the end of March the total number of venues in the UK was 98,609 – 305 fewer than in December 2025.
This decline equates to a net closure of 3.4 venues a day and marks the second consecutive quarter-on-quarter decline in licenced premises.
According to the research, the casual dining sector was most affected by closures, with outlet numbers falling by 0.9%.
The figures follow a significant rise in inflation in essential areas for hospitality, including labour, energy and food and drink.
Additionally, ongoing conflicts in the Middle East are likely to cause a further increase to prices in energy-reliant areas.
“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,” says Karl Chessell, director of hospitality operators and food, EMEA at NIQ.
“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.”
The research also found that outlet numbers in the licensed hotel segment has grown year-on-year and is only 4.7% smaller than it was at the pre-COVID benchmark of March 2020, compared to a 14.3% drop in all outlets.