Cocktail bars a bright spot for UK nightlife
While the UK late-night sector struggled in 2025, cocktail bars saw their numbers grow by 4.3%, with the segment now ‘substantially’ larger than it was in 2020.
The figures are from a report by CGA by NIQ and the Night Time Industries Association (NTIA).
The report found that the number of late-night venues in the UK fell by 4.1% in the 12 months to December 2025. The sector was 28.2% smaller than it was in March 2020.
The hospitality sector as a whole dropped by 0.2% in 2025, and fell by 14.1% since 2020.
However, the ‘evening’ part of the economy fared better than night-time venues, with the number of sites rising by 0.9% between January and December 2025. The evening economy was down just 7.2% on pre-Covid levels.
Cocktail bars and craft bars rose by 4.3% and 3.6% respectively in the 12 months. Themed bars grew even faster at 32.9%, however this was from a much smaller base.
These three categories are now ‘substantially’ larger than they were in 2020.
An uneven playing field
Bar restaurants also had a successful 2025, growing by 1.5%, as did wine bars, which grew by 0.5%.
Less fortunate were nightclubs, which fell by 3.5%. The sector is now 35% smaller than it was in 2020.
Late-night bars, meanwhile, fell by 4.9%.
These two segments are now 35.6% and 23.8% smaller than they were before Covid, equivalent to nearly three net closures per week since 2020.
Venues in town centres grew by 0.4% in the 12 months, while those in the suburbs grew by 2.2%. Rural venues increased by 0.6%.
Things were more positive in central London, with late-night venues rising by 2.7% in 2025. However, the segment contracted by 7% in Greater London.
It was a similar case of the wider night-time economy, with central venues rising by 6% and Greater London’s falling by 0.5%.
The general contraction of the industry has resulted in 65,000 jobs being lost in 2024, with a further 10,000 recorded in the first three quarters of 2025. Figures for the final quarter are yet to be released, however the report noted “many more” are likely to have been lost.
Michael Kill, NTIA’s CEO, said: “This is what happens when a £160 billion (US$215.8bn) sector is loaded with rising costs and then left to absorb shock after shock without support. Losing over 28% of late-night venues is not market evolution; it is policy failure.
“If the government wants growth, jobs and a competitive visitor economy, it must act now. That means an urgent economic support package, including a VAT reduction for hospitality and night-time businesses, before more venues and livelihoods are lost.”
The NTIA is now calling on the government to deliver an economic support package for the industry, which should include a VAT reduction, action on rising labour and operating costs, and investment in late-night transport and safety.
It is also asking for a reform of licensing and business rates.
Reuben Pullan, senior insight consultant at NIQ, added: “2025 has proven to be another tough year for the hospitality sector, and even more so the night-time economy. While pockets of success demonstrate an innovative, adaptable sector, the rising cost of doing business is applying an indiscriminate pressure on the industry.
“These operational squeezes and shortfalls in late-night infrastructure are further complications when many venues are trying to navigate a crucial moment of evolution.”
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