Foodservice Footprint Closed-web-1 Confidence levels across hospitality fall below those during covid Foodservice News and Information  news-email email-news

Confidence levels across hospitality fall below those during covid

More than a third of the UK’s hospitality sector is at risk of business failure in early 2023 due to the “cost of doing business crisis”.

Research by UKHospitality, the British Beer and Pub Association (BBPA), the British Institute of Innkeeping (BII) and Hospitality Ulster showed that 35% of those responding to the Q4 hospitality members’ survey were expecting to be operating at a loss or be unviable by the end of the year, with 96% experiencing higher energy costs and 93% facing food price inflation. 

The impact of the cost-of-living crisis on customers is also being felt: 77% have seen a decrease in people eating and drinking out, while 85% expect this to worsen going forwards. 

Continued uncertainty about rising inflation, future regulation and staffing is causing a crisis of confidence among business owners. Business confidence has dipped lower than at any point during the pandemic and illustrates the deep concern in the sector, the organisations said.  

They called for further business rates relief and, in the long-term, a move to cut VAT for hospitality which “would do wonders in giving consumers the confidence they need to support their local hospitality businesses”.

UKHospitality this week also made its energy advice, guidance and costs calculator available to all businesses in the sector. “We know that our sector is feeling the pinch more than most and that is why we’ve taken the decision to make our expert guidance available to all,” said chief executive Kate Nicholls.