Recent data shows the pressures that the hospitality sector has been under over the last year, where pubs, hotels and restaurants have seen an average increase in their bills of around 81%. This data has been collected by CGA by NielsenIQ, on behalf of the British Institute of Innkeeping, UKHospitality, the British Beer and Pub Association and Hospitality Ulster, and they also found that under a third of businesses in this sector are actually optimistic about what the future holds for them.
Rising Energy Bills, Wages And Food Prices Creating A Perfect Storm
As well as energy prices rocketing for these beleagured businesses they have also had to deal with rising wages and higher food bills. The trade bodies involved are calling for support from the government who they believe are not doing enough to help businesses in the hospitality sector get through this financial turmoil.
Pubs, Bars & Restaurants Are Being Stretched To Breaking Point
The organisations are quoted in an article in the Belfast Newsletter, saying that:
“The energy crisis has been pushing pubs, bars and restaurants to breaking point for a year now.
“The Energy Bill Relief Scheme provided a short respite but with that falling away last month businesses are back to paying high costs, with no end in sight for the thousands locked into contracts who will be obligated to pay extortionate rates well into next year.
“Put simply, this data is extremely worrying for thousands of otherwise viable hospitality businesses.
“No profits means nothing to invest back into businesses, no cash reserves means nothing to fall back on, and businesses being forced to close means important, irreplaceable assets being lost from local communities and economies across the country forever.
“The Government must recognise this crisis isn’t just crippling businesses now.
“Left unresolved it will have a lasting wider impact long into the future, impacting local employment, supply chains and removing essential community hubs from villages, towns and cities across the whole of the UK.”
It is true that the hospitality industry plays a vital role in knitting communities together in our villages, towns and cities, and once a pub, hotel, cafe or restaurant closes it very often closes for good, which can be a big blow to the local area and the people that rely on it. They need support right now more than ever so let us hope that this is forthcoming as soon as possible.