Nearly half of UK hospitality firms 'plan to hike prices' as energy costs soar

01 July 2022 by
Nearly half of UK hospitality firms 'plan to hike prices' as energy costs soar

Nearly half of UK hospitality firms are planning to hike their prices this month as soaring costs continue to batter balance sheets, latest Office for National Statistics (ONS) data has revealed.

The ONS' closely-watched fortnightly business survey found that 46% of food and accommodation businesses expect to increase prices in July.

A quarter (25%) of hospitality firms also said they expect their turnover to decrease this month. Around a third (32%) of hospitality companies also reported that their turnover was already lower in May than in April - a higher percentage than that seen by UK firms across industries.

The new ONS figures also showed the hospitality sector is not alone in planning price rises in July.

The survey found 30% of all businesses said they plan to increase prices this month, and 42% cited spiking energy bills cited as the main factor for considering doing so.

Hospitality firms are currently facing a perfect storm of soaring energy bills and increased food prices on top of higher labour costs amid an ongoing staffing crisis.

The update comes after vacancies in the hospitality sector reached a new high last month. Latest Office for National Statistics (ONS) data revealed there were 174,000 job vacancies in the industry between March and May.

Image: Microgen / Shutterstock

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