A new report from Fourth reveals how hospitality continues to deal with the fallout from global events such as the Covid-19 pandemic and the war in Ukraine. The report is based on data collected from pubs, bars, restaurants and hotels with more than 1,500 sites collectively and a combined spend of £750m with 200 suppliers.
The report found:
- The price of daily essential items rose at ‘historic levels’ between May 2022 and 2023. Milk was up 36%, bread +22%, flour +19% and eggs +17%
- This compares to overall food inflation of 19.1% in the 12 months to March 2023 – a 40 year high outstripping Consumer Price Inflation of 10.1%
- Meat prices have also risen sharply in the last year: chicken +15% and beef +6%
- Drinks prices have proved to be more robust with lager and red wine up by 4% and white wine by 5%
Sebastian Sepierre, managing director – EMEA, Fourth, said: “The data in Fourth’s latest report reveals the extent of the challenges hospitality businesses continue to endure. However, there is hope on the horizon with energy prices and inflation both forecast to head south this year.
“Food price inflation is undoubtedly one of the most pressing issues the industry faces, and it is essential to have the right tools at hand to tackle it head on. Technology can play a vital supporting role in helping businesses navigate the various challenges that continue to plight the hospitality landscape.”