The hospitality industry has settled into 2026 and its realities: tighter margins, sharper competition and a clear divide between operators who are adapting quickly and those being left behind.
Large groups are expanding, independents are under strain and insolvencies remain high. Policy conversations around licensing and business rates are gathering momentum, while restaurants, gastro pubs and hotels are being forced to run smarter operations.
For the hospitality sector, February has reinforced that 2026 isn’t a year for reactive decisions. It’s a year for controlled growth, stronger operational systems and flexible workforce planning.
Consolidation accelerates as bigger groups take the lead
NEOS Hospitality doubled its estate with acquisitions across Revolution, Revolucion de Cuba, and Founders & Co, while Coral Pub Company added 21 Peach pubs. Nearly 1,600 jobs were preserved across both deals.
The lesson for independents isn’t to compete on volume but to run leaner, smarter operations. At Bookachef, we’re seeing this translate into a higher demand for flexible chef staffing, and adaptable workforce solutions that can scale up or down with demand without increasing fixed costs.
Insolvencies and closures highlight sector strain
According to The Drinks Business, 3,353 UK hospitality businesses entered insolvency in 2025. The Caterer tracks continued closures across restaurants, pubs, and hotels. Even an award-winning Leeds restaurant closed recently months after opening, reported by The Hoot.
These closures aren’t necessarily poorly run businesses. They’re often creative, ambitious operators caught in high cost conditions: rising wages, energy bills, supplier inflation, and low post-Christmas trading.
For operators, cash flow discipline is no longer optional but a survival tool. At Bookachef, we help restaurants implement flexible chef cover and short term kitchen staffing to maintain agility.
Business rates relief is helpful but not a fix
In Wales, UKHospitality Cymru welcomed a 15% business rates discount for pubs and restaurants, though overall bills are set to rise in April.
Relief provides a short term breathing space but it doesn’t address the underlying cost pressures. With interest rates at 4.5% and supplier costs continuing to rise, operators cannot rely solely on government support.
Smart operators are using this window to:
- Refine menus for stronger margins
- Streamline labour with flexible teams
- Test seasonal or event led staffing models
At Bookachef, we’ve seen flexible staffing solutions become a crucial tool for managing these challenges while maintaining service quality.
Independent breweries under pressure
Society of Independent Brewers & Associates reported 137 brewery closures in the past year, almost three per day.
For pubs and restaurants, this means fewer local suppliers and the potential for higher costs. But it also creates opportunities for exclusive collaborations with surviving breweries and curated drinks menus that help differentiate your venue.
Growth still exists, but it’s sharper
Despite the closures, new openings continue. February saw countryside restaurants, gastro pubs, and city-centre dining concepts launch across the UK.
Premium operators are also making strategic moves:
- Soho House returned to private ownership, freeing itself from short-term shareholder pressures.
- Freight Island is expanding with a £15m development at Trinity Leeds.
- Growth hasn’t stopped; it’s just more disciplined, strategic, and financially modelled. At Bookachef, we’re seeing this mirrored in how restaurants are approaching flexible staffing solutions and event catering teams to support controlled expansion without overcommitting resources.
February takeaways for venues
Across all of February’s headlines, a two things are clear:
Structural strain remains, but opportunities persist: new openings, acquisitions, and food hall expansions show demand hasn’t disappeared.
Operational precision is key: cost control, flexible staffing, and margin management will define winners.
At Bookachef, we see operators succeeding by embracing flexible staffing solutions and lean operational models. The winners in 2026 won’t necessarily be the biggest. They’ll be the most precise, disciplined, and adaptable.