London pubs are benefiting as more workers head back to the office
After a long road back from COVID, London’s hospitality scene has returned to solid growth in the last couple of years, the latest Hospitality Market Monitor by NIQ shows.
At the end of 2025, the capital had 2,976 licensed premises – a net increase of 0.6% in 12 months, though it had a small dip quarter-on-quarter, in line with trends in Britain as a whole.
London’s increase last year follows growth of 1.4% in 2024, after four successive years of decline before that. The city is still 14.% short of the pre-COVID benchmark of March 2020, when it had 3,462 sites, but it is a positive recent performance given the tough market conditions since the pandemic.
A return to office
London’s modest revival has been partly driven by the steady return of office workers to their desks after sustained periods of working from home- a boost to occasions including lunchtime meals, after-work drinks and on-the-go food purchases.
There has been a similar uptick in tourists, with visitors from many countries benefiting from favourable exchange rates when they visit the UK. Domestic tourism is powerful too. While central London has only 3% of Britain’s hospitality sites, NIQ’s OPUS consumer survey has found that around one in five (21%) of consumers living outside London regularly visit the capital – proof of its vital and outsized importance as the core hospitality hub of the country.
Thursday is the new Friday
According to ONS data from April 2025, 14% of adults in Great Britain said they had exclusively worked from home in the past seven days, 41% had exclusively worked away from home, and 26% had done hybrid working.
A June 2025 report published by the group shows consumers are spending more time and money in their local communities, driving a shift in economic activity away from central business districts and towards neighbourhoods and digital platforms.
Other trends identified by the group include:
- Thursday is the new Friday: Office culture is evolving, with many employees treating Thursday as the unofficial end of the week, reshaping traditional workplace routines and urban footfall.
- Local businesses are being boosted on work-from-home days: While city centres now peak midweek, local high streets are thriving as remote workers spend more time and money closer to home.
- More demand for click and collect: Demand for near-home fulfilment is rising as consumers prioritise convenience and flexibility in how they shop, driven by hybrid working patterns and changing lifestyles.
