Hospitality sector shows signs of recovery as new openings outpace closures for first time in two years

The number of hospitality establishments across the UK has grown for the first time in two years, in a sign of recovery of the industry.

There were 462 new openings and 320 closures between March and June 2024, according to the National Caterers Association (NCASS).

Though the Association remained cautious, it said the data showed the sector had begun moving in a “positive direction” since the same period a year earlier, when closures exceeded openings at 452 versus 340. 

The recovery was driven by a rise of casual dining restaurants and value-driven independent hospitality establishments such as street food, mobile businesses, and small cafés and bars, it said.

The Association praised businesses for their resilience, and for adapting to market changes quickly despite challenges of the cost of living crisis.

“It’s great to see the beginnings of some green shoots of recovery for the hospitality sector after several extremely difficult years for businesses,” said NCASS MD Nick Summers.

“While there is some way to go and there will always be bumps in the road, it is reassuring to hear that spending power and a willingness to do so is beginning to return to the economy.

“Businesses that have adapted to the changing market conditions will be best placed to capitalise on a revitalised hospitality sector.”