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The number of hospitality businesses entering insolvency eased slightly in the first half of 2025, but have still remained “historically high”, according to new findings from Buchler Phillips.
The firm’s Hospitality Index of insolvencies found that 1,706 accommodation and food service companies, including hotels, restaurants and pubs, closed in the six months to June 2025, down 5.5% from 1,806 for the first half of 2024.
Q2 saw a 6.5% increase over Q1 however, with 880 companies affected. The number of monthly hospitality insolvencies has remained “consistently” over 270 so far this year.
The latest index, which has tracked monthly figures since January 2014, rose from 181.2 in March to 197.3 in June. It previously peaked in August 2023 at 273.4 following a spike in the sector’s business closures.
High profile operators closing high street units in the first half of the year have included Italian restaurant chain Gusto, bar owner Brewdog, 19-strong pubs group Oakman Inns, Papa Johns, and Busabai Eathai.
It comes as hospitality businesses face an estimated £3.4bn of additional expenses, in part due to employers’ National Insurance contributions. Industry leaders have warned that potentially higher mandatory pension contributions for staff could also “be the final nail in the coffin” for some companies.
Jo Milner, managing director of the turnaround and restructuring firm, said: “It’s not getting any easier out there; if anything, it’s tougher. Hospitality is stuck near the top of the insolvency league table for now, anchored there by pressure on consumer spending and a number of forces behind higher staff costs.”
