Michelin Restaurant Closures UK: 7 Stars Lost & 2026 Outlook
On 2 February 2026, Six Rooftop in Gateshead, a venue celebrated in the Michelin Guide for its panoramic views and ambitious tasting menus, ceased trading. The statement was brief but brutal: “sustained financial losses” made continuing impossible.
This wasn’t an isolated incident. It was the latest casualty in a wave of Michelin restaurant closures UK that is reshaping the nation’s culinary landscape.
The 2025 Michelin Guide deletion of seven stars was a warning. Now, as we move deeper into 2026, the industry faces a new reality. Culinary prestige is no longer a shield against insolvency. From legislative shifts like the Employment Rights Act 2025 to the aggressive April 2026 Business Rates Revaluation, the mathematics of fine dining have fundamentally changed.
This report analyses why established icons are bowing out and what the data tells us about the future of British hospitality.
The Class of 2025: Why 7 Michelin Stars Vanished from the Guide
The publication of the 2025 Michelin Guide was bittersweet. While new stars were awarded, the headlines were dominated by the seven deletions. Unlike previous years, where stars were often lost due to a dip in cooking standards, 2025 saw stars removed primarily because the businesses simply ceased to exist.
London’s Fine Dining Exodus
The capital, usually resilient to economic headwinds, saw significant losses. Locanda Locatelli, a long-standing pillar of Italian fine dining, was removed following its closure.
Similarly, the closure of Claude Bosi at Bibendum (the 2-star flagship) in August 2025 sent shockwaves through the sector. The Caterer – Claude Bosi Closure Report cited a breakdown in lease negotiations rather than a lack of customers. When a landlord demands rent that outpaces the margin on a £180 tasting menu, even two stars cannot balance the books.
Regional Heartbreak: The Loss of Purnell’s and Store
Outside the M25, the impact was even more severe. Purnell’s in Birmingham, led by Glynn Purnell, closed its doors in late 2024. Purnell described the decision as “heartbreaking,” but the numbers were undeniable.
- Booking Drop-off: A verified 20% decline in midweek covers.
- Utility Costs: Energy bills remaining 80% higher than pre-2022 levels.
In Norfolk, Store also surrendered its star, proving that the “destination restaurant” model is increasingly fragile when fuel costs deter diners from travelling long distances for a meal.
2026 Realities: The Closure of Six Rooftop and the Sustainability Crisis
If 2025 was the warning, 2026 is the reckoning. The collapse of Six Rooftop just days ago highlights that high revenue does not equal profit.
Case Study: The Post-Mortem of Six Rooftop (Closed Feb 2026)
Six Rooftop had everything a restaurant “should” have: a stunning location, a Michelin listing, and a talented brigade. Yet, the Chronicle Live – Six Rooftop Closure report confirms that “difficult trading conditions” forced the closure.
The “P&L of a Star” Breakdown: To understand why this happens, look at the margins of a typical fine dining venue in 2026:
- Ingredients: Food inflation sits at 4.2% (ONS Data), pushing food costs to 32% of revenue.
- Labour: Skilled chefs now command higher wages due to talent shortages, pushing payroll to 40%+.
- VAT: The flat 20% rate remains a stranglehold.
When you combine these fixed costs, a restaurant like Six Rooftop might only retain 3-5% net profit. One bad month, or one unexpected repair bill, creates a deficit that cannot be recovered.
The Sustainability Paradox: Why Green Stars are Bowing Out
It is not just traditional venues suffering. Hjem in Northumberland, a holder of both a standard Star and a Green Star for sustainability, closed in December 2025.
While the owners are pivoting to a new project, Freyja, the closure of Hjem illustrates a painful irony: sustainable sourcing often costs more. Sourcing local, ethical produce is the right moral choice, but in a market where diners are price-sensitive, it squeezes margins tighter than industrial procurement.
The Economic “Perfect Storm”: Business Rates and the Employment Rights Act 2025
Restaurateurs blaming “the economy” is nothing new. However, 2026 presents specific legislative hurdles that are uniquely damaging to the high-labour model of fine dining.
The April 2026 Business Rates Revaluation
This April marks a critical pinch point. The Valuation Office Agency (VOA) has updated rateable values to reflect current market rents. For hospitality, this is catastrophic. Many city-centre restaurants are seeing rateable values jump by 30% or more.
Expert Note: Unlike corporation tax, which is paid on profits, Business Rates are a fixed cost paid regardless of whether the restaurant makes a penny. For a struggling venue, this hike is often the final nail in the coffin.
The Hidden Cost of Labour: Minimum Wage and National Insurance
The Employment Rights Act 2025 introduced sweeping changes to worker protections. While beneficial for staff, the operational cost for employers has been immediate.
- Day One Rights: Unfair dismissal protection from the first day of employment makes recruitment riskier and costlier.
- National Insurance: The employer contribution hike has effectively increased the cost of hiring a chef de partie by hundreds of pounds annually.
For a 40-cover restaurant with 15 staff, these incremental increases add up to tens of thousands in new overheads, money that cannot be recouped simply by raising menu prices again.
The “Michelin Curse”: Prestige vs. Profitability in 2026
There is a growing consensus among analysts that a Michelin star can be a liability. A 2024 study in the Strategic Management Journal highlighted that star acquisition often leads to:
- Higher Rent Demands: Landlords view the star as proof of wealth.
- Increased Customer Expectations: Diners expect perfection, requiring higher staffing levels (more sommeliers, more runners).
- The “One-Off” Diner: Regulars are replaced by culinary tourists who visit once and never return.
Pro-Tip: The “Bib Gourmand Pivot”
Smart operators are now rejecting the “star-chasing” model. Instead, they are aiming for the Bib Gourmand, Michelin’s award for “good quality, good value cooking.”
Why this works in 2026:
- Lower Overheads: No need for white tablecloths or an army of waiters.
- Higher Table Turn: You can seat a table twice in one night, doubling revenue potential.
- Repeat Business: Locals will return for a £50 meal weekly, but only visit a £150 venue annually.
Future Outlook: Who Will Survive the 2026 Fine Dining Shift?
The wave of Michelin restaurant closures UK is not over. We expect Q2 2026 to bring further insolvencies as the new tax year begins.
However, the industry is not dying; it is evolving. The survivors will be those who diversify. We are seeing a rise in “Hypermixity”, venues that offer a coffee shop model by day, a bistro by night, and a retail deli on the side. Agility is the new currency. The rigid, dinner-only tasting menu format is becoming a relic of a pre-2020 economy.
Summary
- 7 Stars Lost: The 2025 Guide deletions were driven by business viability, not culinary failure.
- Recent Casualties: Six Rooftop (Feb 2026) and Purnell’s prove no region is safe.
- Legislative Pressure: The Employment Rights Act 2025 and Business Rates revaluation are squeezing labour-intensive venues.
- The Pivot: Success in 2026 lies in “accessible luxury” and the Bib Gourmand model, rather than chasing stars at any cost.
For the UK hospitality sector, the message is clear: Adapt your business model to the 2026 economic reality, or risk becoming the next headline in the list of closures.
[Guide to UK Hospitality Business Rates Relief 2026] [Official Michelin Guide UK – Full List of 2025 Deletions]
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