UK hospitality sector hits five-year low as profits and confidence collapse
The UK’s hospitality sector is facing its toughest period in five years, according to industry leaders. A new survey reveals plummeting confidence, shrinking profits, and widespread cutbacks as small business ideas struggle with rising costs and weak demand. Over 13,100 venues took part in the research, conducted in October 2025.
Only 26% of hospitality leaders now feel optimistic about their business prospects for the next 12 months—the lowest level in half a decade. Optimism about the wider industry has also fallen sharply, with just 13% believing the sector’s future looks bright. The financial strain is clear: 55% have already reduced staff numbers or cut working hours, while 6% have no loans left at all.
The survey paints a stark picture of a sector under severe pressure. With profits shrinking, reserves dwindling, and confidence collapsing, many business face tough choices in the months ahead. Leaders insist that targeted government support is now critical to prevent deeper cuts and closures.
