Over summer 2025, casual and fast-food restaurants saw a 6% drop in customers compared to the previous summer, according to research from Worldpanel by Numerator.
In December, trade body UKHospitality warned the hospitality sector could lose a further 100,000 workers as a result of the Autumn Budget.
The government has said it is “protecting pubs, restaurants and cafés with the Budget’s £4.3bn support package”.
Last month, the High Street food chain Leon said it will close 20 restaurants and cut jobs as part of a major restructure.
Its co-founder said he believed the company had drifted from its core values under EG and Asda’s leadership, and also cited internal challenges, changing work patterns driven by the Covid pandemic and tax increases – all of which have affected the broader hospitality sector.
Leon’s administration process comes after Pizza Hut’s UK restaurants operator DC London Pie announced it was closing 68 restaurants and 11 delivery sites in October, making more than 1,200 workers redundant.
Administrators said DC London Pie had been hit by a combination of “challenging trading conditions and increased costs”, including “tax-related obligations”.