Is It Last Orders for Pubs?
The headlines really are scary! New analysis from UKHospitality suggests around 540 pubs could shut in 2026, continuing a pattern of steady decline that saw an average of one pub a day disappear across England and Wales last year. Whilst research by the British Institute of Innkeeping (BII) shows that only 50% of UK hospitality businesses, including pubs, are making a profit.
The Sun published the following in late December 2025, “With business rates bills soaring, alcohol duty increasing and pubs getting no help with VAT, sky high energy bills and increased Employer National Insurance costs, it is no wonder that pubgoers are worried about seeing record rates of pub closures in 2026.”
However, it’s not over yet! What’s key is to focus on potential solutions not the problem, to adopt a more agile approach, rather than blaming the Government, the economy, the global situation. A business as usual approach will see doors close permanently.
Pub chains need to adopt a combination of:
- Operational efficiency
- Community integration
- Asset modernisation
- Financial management.
These also need to be based on a foundation of robust adherence to regulatory and legal compliance.
Smaller pub chains, in particular, are well placed to realise the opportunities available to them. Figures show that they often outperform larger competitors by focusing on agility, local appeal and a more tailored customer experience. Larger chains clearly have economies of scale, more financial support and better access to business expertise. They also have a focus on standardisation, volume over margin, with minimal staff and customer interactions. These might be seen as advantageous from a business perspective, but they can also be seen as threats in 2026 – distinct from what research suggests consumers actually want.
With TriVantage’s focus on smaller chains we know that they can succeed in a challenging market, free from the constraints of the larger groups. To thrive requires a transformational strategy comprised of the four key areas above.
- Operational Efficiencies – looking at energy proactively, eliminating waste, embracing technology, gathering data to drive decision-making.
- Community Integration – creating a local feel as the neighbourhood hub, delivering a personalised service, reflecting the building’s character and locality, adapting to meet the needs of different community groups.
- Asset Modernisation – investing in the fabric of the building, utilising available space to support diversification, ensuring facility issues are addressed promptly and providing comfortable and welcoming interiors.
- Financial Management – understanding and managing cashflow, exploring different revenue streams, negotiating better terms with suppliers based on loyalty, investing in staff to reduce turnover and encourage higher service levels.
These actions are key to thriving, not just surviving, ensuring the local is around into the future – whatever that might look like!
But remember this is only a guide, so if you don’t have someone on the team with the relevant experience, you need to consider sourcing experts to walk beside you. This is what TriVantage does!