Festive cheer not on the menu for this year

DINERS face higher prices and less choice on menus for Christmas gettogethers this year, bosses have warned, as venues look set to stop taking bookings earlier.

Kate Nicholls, the chief executive of trade body Uk hospitality, said venues were already finding it tougher to host large events due to the higher costs for ingredients, hiked energy prices and labour shortages.

Recent weeks have seen “a number of major events and corporate dinners struggling to have sufficient staff to manage and have been altering menus to be able to cope,” Ms Nicholls said.

One in six jobs is estimated to still be vacant in the hospitality industry, despite furlough having come to an end. It was expected to propel more people into the sector.

Ms Nicholls said there was a risk that those yet to plan their Christmas parties would be unable to find venues willing to take their bookings. “Venues will take a hit as they may not be able to take as many bookings, or larger bookings, and may turn tables less frequently to match supply and demand.”

Other people will face “higher prices and potentially a restricted choice” when they come together for festive parties, Ms Nicholls added.

The warning comes as restaurants and bars struggle to cope with the deluge of cost increases. Revolution Bars chief executive Rob Pitcher said last week: “I’ve never seen energy cost increases like this. It’s the number-one issue across the whole of the hospitality sector at the moment from a cost point of view.”

He said energy costs had doubled for some restaurants and bars, and smaller businesses in the sector were “literally hanging on”.

Energy prices are subject to a cap, although that was raised by £139 at the start of this month, meaning the average bill stood at around £1,277. The price cap is reviewed every six months.

Despite this, suppliers have still been struggling given the scale of the wholesale gas price rise, with almost a dozen having gone bust in recent months.