Hospitality venues 'struggling to keep doors open'

HOSPITALITY has been dealt a series of punishing economic blows that together mean Britain's restaurants and pubs are "struggling to keep their doors open".

Hospitality: ‘It’s going to be tough’ says Watson in January

Inflation, soaring energy costs, price hikes which are “spiralling out of control” and rising rent has left the vulnerable sector “on its knees”. Owners have been left with no choice but to increase their own prices, forcing out disgruntled customers. Emma McClarkin, chief executive of the British Beer and Pub Association, acknowledged that the cost-of-living crisis has left all businesses across the country fighting the same battle – but she said that for pub and restaurant owners, it’s a “double-edged sword”.

She said: “Two years of lockdowns and restrictions on usual operations took the wind out of our sails to say the least and now we have emerged into a very different trading environment.”

In December last year, hospitality sector bosses feared that venues might never recover from the ravages of the Omicron variant, which left pubs and restaurants across the UK empty.

Now summer is here, but there is no respite from the misery in sight for businesses. Emma added: “Alongside rocketing energy bills, supply chain volatility and a staffing crisis and you have a perfect storm.

“Pubs across the country are struggling to keep their doors open.”

Many pubs have opted to close on certain days of the week, run reduced menus or hire agency staff to stay open, at an inflated expense.

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Many eateries now close on certain days of the week (Image: Getty)

It comes as this week’s rail and Tube strikes could cost the hospitality industry millions, heaping pain on the already broken sector.

Industry body UK Hospitality says it expects to see revenue hit by up to 20 percent, in comparison to takings on a normal week in mid to late June.

Its chief executive Kate Nicholls told Sky’s Ian King Live show: “It’s a very fragile industry that cannot withstand this type of economic shock.

“For many businesses, this will push them closer towards the edge of viability.”

In yet another blow, figures were released yesterday that revealed inflation hit a 40-year high of 9.1 percent last month – leading Ms McClarkin to call on the Government to intervene.

She said: “Something has got to give, or we risk losing pubs as the beating heart of communities across the country.

“We need the Government to provide relief for hospitality businesses before it is too late.

“Support from the Chancellor for consumer energy costs provided some relief for our industry in the hope that customers would feel they could spend more, but we are still waiting for direct action to support our pubs and brewers.”

Ms McClarkin added that longer-term, Alcohol Duty Reforms need to be brought forward so the country’s alcohol taxation system is in line with others around the world.

Richard Burge, Chief Executive of London Chamber of Commerce and Industry, said: “The London Chamber has been calling on the Government to provide targeted help – including introducing an energy price cap, VAT cuts, and the reversal of National Insurance and corporation tax rises for businesses – for months.

“We need to see the return of a pro-business Government, recognising the essential role businesses in the hospitality sector play for our economy.”

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