The joint Q4 Hospitality Members’ Survey showed that 35% of respondents were expecting to be operating at a loss or be unviable by the end of the year, with 96% experiencing higher energy costs and 93% facing food price inflation.
More than three quarters of operators (77%) are seeing a decrease in people eating and drinking out, with 85% expecting this to worsen going forwards. As a result 89% are either not confident or pessimistic that the current levels of support offered by Government will protect the industry in the next six months.
In a joint statement, the trade associations said: “The results clearly lay out the stark situation facing hospitality businesses, with many on the brink due to the cost of doing business.
“The vulnerability of the sector due to soaring energy costs, crippling rises in the cost of goods and dampening consumer confidence is on full display in this survey and if urgent action isn’t taken, it is looking incredibly likely that we will lose a significant chunk of Britain’s iconic hospitality sector in the coming weeks and months.
“Hospitality has huge potential to be real driver of economic growth, job creation and deliver millions to the Exchequer and our local economies. Prior to the energy crisis, the sector was showing signs of having bounced back strongly from the pandemic and looking to grow. We would all encourage the new Prime Minister to work with the sector on these suggested measures and what further action can be taken to ensure hospitality continues to thrive well into the future.”
