Over the past week, reports have highlighted a troubling reality for the hospitality sector: one in three businesses is now operating at a loss. The data comes from a new survey by the British Institute of Innkeeping, UKHospitality and the British Beer & Pub Association. The report follows a sharp rise in operating costs, with April alone bringing an estimated £3.4bn in additional expenses to the sector. Unfortunately, many pubs, bars, and restaurants are struggling to stay afloat.

The pressure is also affecting jobs, with six in ten venues surveyed either cutting roles or reducing hours for their teams. It’s a deeply worrying situation, although not entirely unexpected after several very difficult years for the industry. I’ve been thinking a lot about what’s within an operator’s control and, more importantly, what isn’t. Business owners can adapt, innovate, and do their best to create great experiences for customers, but as we all know, many of the biggest challenges come from beyond the walls of a venue.

Government-imposed costs such as increases in the national minimum wage, employers’ national insurance contributions and changes to business rates continue to pile on pressure. Then there’s the energy crisis. Utility companies hold extraordinary influence, and many operators are locked into contracts that make long-term survival almost impossible. I often hear from clients who were promised “the best deal” by suppliers, only to be left trapped in unmanageable terms with little way out.

What’s at stake isn’t just individual venues but the jobs, communities and economic contribution that hospitality supports across the UK. The warning signs are there. The question now is how we respond. While many of the biggest pressures lie beyond operators’ control, there are still areas where they can make a difference. You might expect enforcement to be one of them. After all, every operator is responsible for their premises and should understand licensing laws, regulations and the conditions of their premises licence.

In reality, enforcement can be unpredictable and inconsistent, varying significantly by location. Even the most diligent operator, fully compliant with legislation, policies and licensing conditions, can face enforcement action. Hospitality venues open their doors to all kinds of people, including some whose behaviour is reckless or deliberately harmful, with little regard for the consequences.

Even well run bars and pubs can find themselves drawn into enforcement proceedings such as licence reviews or closure orders. Sometimes this is simply because they are located in areas where drug use or dealing is common. Occasionally, trouble arises long after the last customer has left – perhaps in the car park late at night while the manager is asleep and unaware. There are also times when problems come from unexpected places. For example, someone from out of town might cause a scene after spotting, thanks to social media, the person who ended their marriage dining at a gastropub.

Adding to the uncertainty is the patchy approach to enforcement by police forces and other enforcement agencies across the country. Enforcement depends heavily on local priorities and crime plans. Take underage test purchases: only two police forces in England and Wales are actively undertaking compliance checks, while the other 41 appear to be applying their resources to other issues.

Many local authorities actively carry out licensing inspections, but what happens next varies greatly. Sometimes, a quick follow-up visit checks that any breach has been fixed. Other times, operators receive a written notice explaining the breach along with suggestions for improvement. In more serious cases, a formal written warning may be issued.

Operators in certain areas can face much tougher realities. Inspections by the police alone can lead to notices under Section 19 of the Criminal Justice and Police Act 2001. This section allows police to issue a notice if alcohol has been sold on the premises within the past 24 hours without proper authorisation such as a premises licence, or in breach of the licence conditions. If the operator does not comply within the time allowed, which can range from seven days to six months, the police can apply to the magistrates’ court for a closure order. Breaching a Section 19 notice provides strong evidence to support that application.

In other parts of the country, a different approach is emerging. Some licensing police teams choose to notify an operator of a breach, either in person or in writing, before taking formal enforcement action. If the issue persists on a return visit, often within a month, the matter can escalate quickly. The next step may be an interview under caution, a formal legal process used when the police believe an offence has been committed. The interview is recorded, and anything said can be used as evidence in court. Many operators find this intimidating and challenging to handle without proper legal support.

This approach is serious and signals that the police may be preparing to prosecute. Charges can include trading outside licensed hours, failing to comply with licence conditions or breaching the Licensing Act. If convicted at the magistrates’ court, an operator’s personal licence can be suspended or revoked. The evidence can also be used to support a review of the premises licence. The frustrating part is the lack of consistency. In some areas, the same breach might simply result in a warning and a chance to correct the issue without formal action or court involvement. It really is a postcode lottery.

Where you choose to trade shouldn’t be dictated by local enforcement styles, but knowing how your area handles these matters is crucial. We always remind those we work with that prevention is better than cure. Taking time to review your premises licence and ensuring it reflects how your site actually operates, especially after changes in staffing or procedures, is a valuable investment.

More broadly, the hospitality industry urgently needs a fairer and more consistent regulatory framework. Operators should be free to focus on running great venues – not second-guessing shifting rules or navigating a postcode lottery of enforcement. Time and again, hospitality has proven its value to the UK economy and to local communities. It deserves meaningful support from government and a system that backs those working hard to do things right.

With that in mind, the team at John Gaunt & Partners would like to extend its warm congratulations to Kate Nicholls on her appointment as the first full-time chair of UKHospitality, starting 3 July. Kate has long been a passionate and effective advocate for the sector, and we’re hopeful that in this new role, she will help strengthen relationships with government and drive clearer, more consistent communication. We look forward to seeing her continue to champion hospitality at the highest level.