How is the cost of living crisis affecting businesses in Scarborough?
Some Scarborough businesses are struggling to keep their livelihoods afloat amid the cost of living crisis and staff shortages.
As well as households, shops, restaurants and other businesses are also facing the burden of rocketing energy costs.
The Denison Arms in East Ayton is one business that has felt the impact of the cost of living crisis.
Zoe Flynn, one of the owners of the Denison Arms, said: “We have had to change our menu, by trying to offer choices that are more affordable to us as the buyer and to the customers' affordability. We have noticed that without tourists in the area, trade has dramatically decreased.”
Pubs in the Scarborough area feel that they are competing with supermarkets on alcohol and drink sales, and are relying on their food sales to stay open.
Mrs Flynn said: “We are solely reliant on our food sales costing the bare minimum for profit and to enable our business to remain open.
“We can see this is only going to become increasingly difficult as we head into the winter months.
“We are in a situation where we may have to keep the business closed on certain days and not be open seven days a week, to save on energy costs and staff costs whilst keeping the business in a profitable situation.
“It’s a very worrying and
difficult time for all businesses in this sector and if the cost of living and energy bills keep increasing, I can see that well-run businesses such as ours will suffer or even
have to close.”
Staff shortages are exacerbating the problem, with the difficulty in finding experienced staff becoming a growing concern.
Mrs Flynn said: “Our dilemma has been finding staff of a more mature age that are already experienced in hospitality roles.
“We are finding that these
such people no longer feel that being in hospitality is a safe role for income and hours available to secure that.
“We have staff members that are studying and in college, and are therefore only working part time for that extra income and not a career within the trade.”
The hospitality sector has struggled with staffing shortages since the pandemic began, and many hospitality businesses are having difficulty recruiting staff.
Sheena Medd, who runs Winking Willy’s fish and chip restaurant and shop on Scarborough’s Sandside, joked that hospitality “is a life sentence”.
The family-run business has needed the huge surge of customers during the summer months which so many seasonal businesses rely on, but at the moment it can’t capitalise on it.
Mrs Medd said: “We’ve been shutting earlier. Me and core staff have been doing 11or 12-hour shifts.”
Before, the popular chippy opened until 10.30pm but even on busy days they had to close shop by 8pm.
Mrs Medd, who has been struggling to recruit and retain staff following Covid, said: “People don’t want to go into hospitality, they want to live their best life.
“After Covid, some are too anxious or too nervous – I think it’s both mental health and generational reasons,” said Mrs Medd.
“The good ones tend to leave and move on, it’s the same with chefs and waitingon staff.”
Other traders agreed with Mrs Medd, with one stating: “I do think there is a trend that some people want the good life without wanting to work to earn it.
“Perhaps certain social media ‘influencers’ are to blame here.”
There is also a lack of students in the area, with many having left Scarborough to study in other towns and cities and leaving their jobs behind.
Chris Marson, owner
of Marson & Co, a design, print and marketing specialist based on Westborough, said: “Leisure and hospitality businesses are struggling for staff, for sure.
“We’ve got a sad situation where there’s a demand for high quality student accommodation in the town, and nowhere to put them.
“If we did, then we’d have a new wave of people here not only filling those vacant positions, but also fuelling the economy.
“I think there is a lack of people in the market for part-time work. We need to meet the need for good student accommodation.”
He added: “The rising costs of energy is our biggest issue so far.
“However, we’re putting things in place to make sure we’re in the strongest position possible to come through the other side, whenever that may be!
“I believe the crisis is starting to impact the town, and sadly the worst will come over winter.
“Energy bills are going up, and businesses are also trying to help their staff out financially whilst still recovering from the impact of Covid.
“The Government can absolutely be doing more. The VAT threshold is too low, business rates are too high. It stunts the growth of SMEs (small and mediumsized enterprises).
“Those businesses who are agile and adapt will survive, just like they did through the pandemic. But we will sadly lose a few.”