Night-time economy under pressure as early dining takes over

The festive season is fast approaching, yet hospitality businesses may not feel too jolly this year.

Among the worries around the Autumn Budget, rising costs, and other economic difficulties, the UK’s nightlife has taken a hit, with data from Night Time Economy Market Monitor reporting a steep decline in late-evening footfall and spending across pubs, bars, and restaurants.

This revelation comes just three months after the UK Government announced plans to protect venues from noise complaints through its “Agent of Change” principle, which was introduced in July to help revive the high street. 

But with nightlife continuing to struggle post-pandemic, there’s evident worry that changing booking patterns and reduced late-night trade could undermine the benefits of the new protections.

Early-evening trade surpasses traditional peak hours

Many things have changed following the COVID-19 pandemic. This includes Brits’ dining habits, with a large majority opting to eat out earlier — creating a new peak period for hospitality venues.

Data by NIQ’s Night Time Economy Monitor for November 2025 found that the late-night economy has reduced by 4.6% in the last year, largely due to the cost of living crisis, safety concerns, and unreliable transport. It also reported a 28% decrease in the industry since March 2020, when lockdown restrictions prompted a wave of venue closures across the UK.

The preference for earlier dining has also contributed to the ongoing decline of traditional late-night trade.

According to research reported by Restaurant Online, the average preferred start time for a dinner reservation is now 6.12pm, almost two hours earlier than the traditional 8pm peak commonly seen before the pandemic. 

The survey of 5,000 British adults revealed that bookings for reservations between 12pm-6pm rose to 48%, and that just 2% of bookings are now for after 9pm. Convenience (37%) and ease of booking (22%) were among the most common reasons for this.

Government’s noise-compliant protections in question

For hospitality firms already grappling with rising costs and post-pandemic changes, new Government protections may not land as intended if late-night dining is becoming a thing of the past. 

In August, the Government announced plans to revamp the hospitality and nightlife scene by incorporating the Agent of Change Principle into its National Licensing Framework. 

This includes new proposed laws to protect venues from noise complaints by making developers responsible for soundproofing new residential buildings near existing pubs, bars, and music venues — rather than penalising the businesses with fines.

However, with Brits increasingly choosing to dine earlier in the evening, pubs and bars are likely to see less late-night trade. As a result, the Government’s plans may struggle to address the realities of today’s changing consumer behaviours and nightlife patterns. 

What does this mean for the night-time economy?

With fewer customers out during the traditional 7-10pm peak, hospitality businesses may see reduced revenue — even with higher Christmas and New Year trading.

In this year alone, there have been 1,086 pub closures between January and October 2025 — 185 of which were lost to conversion or demolition. This includes multinational brewery BrewDog, which announced plans to close 10 of its bars in the summer.

Further costs are expected too, most notably the upcoming Nuclear Levy, which is set to take effect next month — adding even more financial pressure for already struggling venues.

These ongoing problems have pushed experts to call on the Government to extend its support to hospitality businesses into the new year.

Mike Kill, CEO of the Night Time Industries Association, told Restaurant Online that the Autumn Budget is a “chance to reverse this trend and recognise the late-night sector as the cultural and economic powerhouse it truly is”.

Meanwhile, Reuben Pullan, Senior Insight Consultant at NIQ, adds: “Christmas and New Year trading will bring a much needed boost, but we’re likely to see more closures into 2026 unless the late-night economy gets the support from central and local government that it deserves.”

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Planet of the Grapes founder Matt Harris has over 25 years of experience in hospitality. Read his bi-monthly column for Startups now.

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