UK Hospitality 2026 trends: What Pub & Restaurant Owners in the UK need to know
From April’s business rates overhaul to rising wages, licensing reform, and the growing appetite for premium experiences. Here’s what Everett King clients in the licensed trade and hospitality sector need to act on right now.
2026 is a year that demands your full attention, as costs are rising, the rules are changing, and the hospitality market trends unfolding across the UK right now will have a direct impact on your bottom line. Whether you are ready for them or not. At Everett King, our job is to make sure you understand what is happening and what you can do about it.
- Business Rates are changing in April 2026 – Check your bill now
This is the most urgent issue for any hospitality business operating from physical premises. The Government’s 2025 Budget confirmed a full revaluation of business rates taking effect from 1 April 2026. Because the previous valuation was carried out during the pandemic, when property values were lower, many businesses will see their Rateable Values rise sharply to reflect post-COVID recovery.
The Government has responded with a permanent reduction to the business rates multiplier for retail, hospitality and leisure (RHL) properties. Small RHL properties will see the tax rate fall by nearly 12p; all others below £500,000 rateable value will see a fall 12.5p. Transitional Relief caps ae also in place:
- Properties up to £20,000 rateable value – bill increases capped at 5% in 2026/27
- Properties between £20,001 and £100,000 – increases capped at 15% in 2026/27
- Properties above £100,000 – increases capped at 30% in 2026/27
What this means for you?
Do not assume your bill will go down. For many businesses, the end of the temporary 40% RHL relief combined with higher rateable values will mean a net increase, even with the new multiplier. Check your new rateable value now and speak to us before April to model your actual position. Getting this wrong could seriously damage your cash flow.
2. Wage Costs are Rising, and they are not Finished Yet
The National Minimum Wage rose 6.7% in 2025 and hospitality, with it’s high proportion of lower paid and part-time staff, has felt this more acutely than most sectors. Combined with National Insurance changes from the 2025 Budget, many clients tell us their monthly payroll looks very different to 12 months ago.
The wider picture is stark: the UK hospitality sector has lost over 84,000 jobs since late 2024, and licensed premises are closing at a rate of 2 per day. The sector is now 14% smaller than it’s pre-pandemic size. This is not a reason for pessimism, it is a warning that business without sound cost structures will not survive.
What this means for you?
Payroll must be reviewed regularly, not jus at YE. Our payroll bureau and management accounting team can help you understand the true cost of your staffing model, identify efficiencies, and ensure compliance with auto-enrolment and current NI thresholds.
3. Stock and Cost Control is more critical than ever
Energy costs, food and beverage supply costs, and the administrative burden of running a licensed operation have all increased. In this environment, stock leakage, over-ordering, and poor purchasing decisions can quickly erode margins that were already thin.
This is precisely where Everett King’s ILTSA-accredited In-house Stocktaking and Valuation Team add direct, and measurable value. Our ILTSA-accredited Stock-taker, Dawn Lake, work across the licensed trade, from pubs and bars to hotels and restaurants, identifying discrepancies, benchmarking performance, and providing the independent data you need to make informed purchasing and pricing decisions.
What this means for you?
If you are not contacting regular, independent stock audits, you are almost certainly losing money you cannot see. We provide stocktaking services tailored to you and your operation! Contact us to discuss a schedule that works for your business.
Talk to Everett King
The hospitality and licensed trade sector is navigating one of it’s most complex financial environments in years. Getting expert advice, from accountants who genuinely understand you and your business, has never mattered more.
Whether you need help modelling your April 2026 Business Rates position, reviewing payroll, or tightening stock controls. We are here. We offer a free 2 hour, to understand you and your business! Click here to send an email to The Everett King Team.