Britain’s leading managed pub, bar and restaurant groups enjoyed their best December trading in three years, the latest data from CGA has revealed. However, thanks to double digit inflation, sales remain well below pre-Covid levels in real terms, demonstrating the double pronged impact of the cost-of-living crisis and Covid recovery on UK businesses.
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Barbican Brasserie By Searcys
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The UK hospitality trade rode a wave of World Cup fever in November, when sales were above a still somewhat Covid-dampened environment at the end of 2021. However, with inflation biting hard and more disruption on the way over Christmas 2023, operators could be set for a challenging end-of-year run.
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The staffing crisis is very much still underway heading into Christmas, data from CGA has revealed, with one in nine jobs in hospitality still vacant despite improvements in recruitment.
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Pubs, bars, and restaurants are recording positive sales in Britain’s major cities — but high inflation is making real-terms growth very difficult.
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Unemployment levels are at a record low, while the total number of job vacancies in May-June 2022 was 1.3 million, according to the latest figures released by the Office for National Statistics (ONS).
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Hospitality has lost 2,200 licenced venues in three months as crippling costs and staffing issues continue to hit business operators.
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It seems no matter where the cost increase comes from – whether it be energy bills, business rates or fuel increases – the consumer will always pay the ultimate price.
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According to data from OpenTable, the global restaurant booking system, dining numbers in London are falling short of pre-pandemic levels.
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The government has announced a new energy relief scheme that will reduce energy bills for businesses by 50% of expected levels.
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The latest insolvency figures show just how hard the hospitality industry has been affected by the cost-of-living crisis and soaring energy bills, with pubs, bars and restaurants some of the worst hit among UK businesses.
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Next month, the Drinks Trust will launch the Emergency Energy Poverty Fund, a dedicated grant-giving campaign to help vulnerable hospitality workers heat and power their homes.
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The six-month energy cap unveiled by the Prime Minister yesterday has been met with a smattering of optimism among businesses. Though predictably, the resounding consensus from many corners of the trade is that the measure does not nearly go far enough in limiting the impact of exorbitant energy costs.
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UKHospitality (UKH)chief executive Kate Nicholls has written an urgent letter to the UK government, outlining the potential disaster facing thousands of businesses in light of the energy crisis.
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The Drinks Trust has partnered with the Equal Measures initiative to support marginalised and underrepresented people within the cocktail and spirits industry.
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As inflation takes hold of consumers and businesses alike, the hospitality industry remains in a deadlock, with businesses planning for more challenging times ahead.
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Nick Gillett, MD at specialist spirits company Mangrove UK, talks challenges and opportunities for the still beleaguered on-trade.
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Temporary changes brought in to help the hospitality industry during Covid will be extended until Spring 2023 before being made permanent.
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Mounting pressure is being placed on the government to ease the ‘financial fragility’ of the hospitality sector during its upcoming review of business rates, as businesses continue to suffer rising supply chain costs and runaway inflation.
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