Flat hospitality sales tip some operators into insolvency
Today’s company insolvency statistics show accommodation and food services insolvencies rose 9% month-on-month from 205 in December 2025 to 223 in January 2026. However, insolvencies in the sector dropped 18% year-on-year from 273 in January 2025.
Saxon Moseley, Partner and Head of Leisure and Hospitality at leading audit, tax and consulting firm RSM UK, said: “Most hospitality operators held on at the end of last year to capitalise on Christmas trading, before having to assess their options in January. The persistent wet weather and fragile consumer confidence has meant it’s been a tough start to the year for the industry, with the NIQ RSM Hospitality Business Tracker showing flat like-for-like sales, tipping some into insolvency.
“The hospitality sector consistently features in the top three industries experiencing the highest number of insolvencies, highlighting it’s one of the hardest hit by relentless cost increases such as higher taxes, National Minimum Wage and inflation. While it’s encouraging to see a drop in hospitality insolvencies year-on-year, this may be in part due to the sector shrinking overall, as the challenging trading environment makes it difficult to not only enter the market, but to compete.
“With more headwinds to come, operators must act now to preserve cash, explore cost-cutting options, and most importantly, protect the customer experience to keep people coming through the door.”