Proactive Investors - Pubs, restaurants, and bars across the UK are calling for government support after it was found that the average operator’s bill jumped 81% in the last year, according to the CGA.
Energy prices have soared in the sector, with many businesses that elected to enter fixed-term contracts still experiencing steep prices despite wholesale costs falling.
With food prices and wage bills rocketing too, more than two-thirds of hospitality owners no longer feel optimistic about the future.
These spiralling costs have already begun chopping away at the sector.
Real estate specialist, Altus Group (TSX:AIF), found that over 150 pubs shut for good in the first quarter of 2023, marking a 60% jump from the year before.
A joint statement from some of the UK’s leading hospitality bodies stated: “The Energy Bill Relief Scheme provided a short respite but with that falling away last month businesses are back to paying high costs.
“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.”
The statement urged the government to help reduce cost pressures or face closures that would in turn impact supply chains, local employment, and community hubs across the UK.
A government spokeswoman pointed to the £6.9bln in relief paid out to hospitality firms and noted the support venues have already received.
She said: “We acted swiftly to provide businesses, including the hospitality sector, with an unprecedented package of support [over the last year].
“We will continue to stand by businesses.”