Despite ongoing cost pressures and cautious consumer spending, the latest NIQ Hospitality Market Monitor reveals signs of resilience in Britain’s drink-led and independent hospitality segments.
While the overall number of licensed premises in Britain remains 0.6% lower than a year ago, the third quarter of 2025 brought a modest but meaningful 0.6% quarter-on-quarter increase. This is the first such rise in a year. Beneath this headline, a closer look at pubs, bars and independents reveals a more nuanced and encouraging picture.
Drink-led venues outperform food-led counterparts
Drink-led venues, particularly bars and high street pubs, have shown surprising strength in the face of economic headwinds. Between September 2024 and September 2025:
- Bars grew by 1.3%, with 572 openings offsetting 512 closures.
- Bar restaurants rose by 2.4%, reflecting consumer appetite for hybrid formats.
- High street pubs increased by 0.5%, while community pubs edged up 0.2%.
In contrast, food-led venues such as food pubs and restaurants saw declines of 2.0% and 2.7% respectively. This divergence suggests that consumers, facing tighter budgets, are prioritising more affordable social occasions like drinks out over full dining experiences.
Independents lead the way in new openings
One of the most notable trends in the report is the resurgence of independent operators. While managed groups saw a slight 0.2% year-on-year decline in site numbers, independents grew by 0.1%. More strikingly, in the third quarter alone, independents expanded by 0.9%, outpacing the 0.4% growth of managed venues.
This growth is particularly evident in the bar segment. Low barriers to entry and strong consumer demand for unique, local experiences are fuelling entrepreneurial activity. These start-ups and small businesses are not only helping to stabilise the market but also injecting fresh energy and innovation into the sector.
A sector still in flux, but with reasons for optimism
The churn in the market remains high. Long-term challenges such as rising costs, staffing pressures and fragile consumer confidence are far from resolved. However, the performance of pubs, bars and independents offers a glimmer of hope.
Managed pubs have outperformed restaurants in like-for-like sales throughout 2025, especially during the warmer months. This trend, combined with the growth of independent venues, suggests that hospitality’s recovery may be led from the bar rather than the kitchen.
What’s next?
As the sector heads into the crucial Christmas trading period, the resilience of drink-led and independent venues will be tested again. But if current trends continue, they may also be the ones to lead hospitality into a more stable 2026.
The Hospitality Market Monitor from CGA by NIQ provides exclusive quarterly analysis of the licensed sector across Britain, with breakdowns of openings and closures by region, channel, tenure and more. Its expert analysis of trends and developments helps operators, suppliers and investors assess opportunities and challenges across the sector. Download the full report here.
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