UK pubs face a £59m dip as younger generations lead the way for Dry January

January is traditionally one of the toughest months of the year for pubs. But new research from Simply Business suggests that 2026 could be particularly challenging, with UK pubs potentially missing out on £59 million in revenue as millions of adults take part in Dry January.

With rising costs, changing customer habits, and uncertainty around business rates – many pub landlords are asking the same question: how do you stay resilient during a quieter start to the year?

How many people are taking part in Dry January?

Our survey of 2,000 UK adults found that almost one in four people plan to give up alcohol this January. That equates to around 13 million people nationwide choosing sobriety for the month.

While that’s a significant shift in consumer behaviour, opinion is split. Nearly half of respondents said they won’t be taking part at all, highlighting that January trading isn’t disappearing – it’s changing.

Dry January participation varies by region

Dry January participation also varies widely across the UK:

• London has the highest uptake, with one in three (39 per cent) of residents planning to go alcohol-free this month
• Scotland shows the lowest participation, with just 13 per cent in Glasgow and 15 per cent in Edinburgh taking part

Understanding local customer behaviour can help pub owners decide whether to lean into alcohol-free offerings, or focus efforts elsewhere.

Why January hits pubs so hard

January is already a difficult month for hospitality businesses. After the festive rush, footfall drops, disposable income tightens, and operating costs remain high.

Neil Gorman, owner of Arrowz Lounge in Broxburn, explains:

“January footfall is probably less than half a normal month – and even more so in comparison to December which, by contrast, is the busiest.

“But it’s understandable. Customers are probably a bit tired of the over indulgence through Christmas and New Year and the early weeks in January are often seen as an opportunity to dry out.

“I’d say people are more inclined to not go out in January. We don’t see a huge upturn in non-alcoholic drinks being purchased – though there may be more regulars who choose a soft drink if it’s for a quick visit.”

A challenging backdrop for the pub industry

The findings come at a difficult time for the sector. Estimates from the British Beer and Pub Association previously suggested that one pub would close every day in 2025.

Against this backdrop, the government is expected to announce changes to how business rates are calculated for pubs, following widespread pressure from pub owners and campaigners. These reforms aim to limit increases in business rate bills and could provide much-needed relief for struggling venues.

Our earlier research as part of our Bleak Friday campaign revealed that, without meaningful support, UK pubs could face extinction by 2035.

Supporting local pubs this January

Julie Fisher, UK CEO at Simply Business, highlights the importance of backing independent venues:

“Often a quiet month for footfall, January can be stressful for pub owners. As consumers look to save money following a busy festive period, alongside those taking part in Dry January, many small business owners rely on a successful Christmas trading period to support them through the first month of the year.

“As some estimates show that one pub closed every day last year, we must do all we can to support these local hubs.”

Whether customers are choosing a pint, a glass of wine, or an alcohol-free alternative, continued support from local communities can make a real difference during one of the hardest months of the year.

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Insight compiled from a survey of 2,000 UK adults (nationally representative) conducted by Censuswide for Simply Business in January 2026

Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.

Cost estimates are based on ONS UK population figures and the average reported drop in pub spending from a survey of 2,000 consumers.

ONS mid-year population figure for those aged 18+ = 55,022,253 / 100 x 24.25% of respondents taking part in Dry Jan = 13,342,896.35 (13 Million) Brits taking part. 

13,342,896.35 x £4.48 (difference between stated typical monthly pub spend and expected January pub spend) = 59,776,175.64 (£59 Million) estimated loss.