Pubs, restaurants plead for action as bills soar by 81%
UK pubs, bars and restaurants revealed their average bills have surged 81% over the past year as firms make further pleas to the Government for support.
Industry bodies have revealed that less than a third of hospitalitybusinessesareoptimistic about their future after swallowing mammoth energy priceincreases,aswellasmore expensive food and wage bills.
Data collected by CGA by NielsenIQ on behalf of the British Institute of Innkeeping, UKHospitality, the British Beer and Pub Association and Hospitality Ulster revealed the extent of the current turmoil facing the industry.
The research showed that 29% of hospitality businesses said they feel optimistic about the next 12 months.
Business owners said they are particularly concerned about energy costs, with 86% of firms saying it was a worry.
Itcomesaroundayearsince energy bills rocketed after the
Russian invasion of Ukraine sparked a sharp uptick in gas prices.
Asaresult,manyfirmswere forced into long-term fixedrate contracts last year which have weighed on profitability and resulted in closures.
Last month, analysis of official Government data by the commercial real estate specialist Altus Group found more than 150 pubs have disappeared for good from English and Welsh communities over the first three months of 2023,representinga60%jump on levels from last year.
The trade bodies have joinedforcestowarnthatmore venueswillshutforgoodifcost pressures do not ease soon.
In a joint statement, the organisations said: ‘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 contractswhowillbeobligated topayextortionaterateswellinto 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.
‘TheGovernmentmustrecognise this crisis isn’t just crippling businesses now.’