London hospitality seeing bounce back – report

London’s hospitality sector is seeing a revival after years of financial chaos caused by the Covid-19 pandemic, according to new research.

The study, by hospitality research company CGA and consulting firm AlixPartners, found that between September 2023 and September this year the number of licensed premises increased by 1.8% in central London and 0.4% in Greater London.

The BBC, reporting on the report, noted that the report also found nightclubs were still struggling, which has led some to innovate by opening during the day.

Karl Chessell, from CGA, said:

“While the sector is smaller in outlet terms than before Covid, the last six months have shown that hospitality groups, investors and entrepreneurs have been confident enough to be opening rather than retrenching.”

Nightclub venues still remain in decline, the research found, while pubs and bars are seeing growth.

Graeme Smith, managing director at AlixPartners, warned:

“These latest findings would have provided some cause for optimism.

“However, significant challenges remain; the plans set out in the October 2024 Budget mean we must view these latest figures through an extremely cautious lens.”

A Treasury spokesperson said the employers’ NI hike was necessary to fund public services and tackle a £22bn “black hole” – a figure disputed by the Conservative Party.

They added:

“We are also protecting small businesses’ business rates bills from inflation and extending 40% relief for 250,000 properties, totalling £1.6bn in relief. And from 2026 we will permanently cut business rates for retail, hospitality and leisure businesses for the first time.”