Three-quarters of small F&B operators have put up prices

Three out of four small F&B operators have raised prices over the past year amid surging operational costs and hospitality taxes.

According to a survey of independent F&B operators by Zempler Bank, more than half of operators (55%) have cut staff hours and nearly half (48%) have reduced opening days, as costs for independent operators surge.

Approximately four in 10 operators have dipped into personal savings to cover business shortfalls, and 38% have delayed supplier payments.

Against this backdrop, nearly one in five operators (18%) are questioning the long-term viability of their businesses, and just a quarter are feeling confident about growth in the year ahead.

These findings echo research from the British Chamber of Commerce, which found that 80% of British businesses are already seeing or preparing for added costs from the US-Israel conflict with Iran, with economic fallout expected to be felt for many months to come.

Zempler Bank’s chief product and customer officer Alex Rice said: “Britain’s small food and drink businesses are hugely resilient and creative, but they are under extraordinary pressure. Many are being forced to make difficult short-term decisions just to survive, from dipping into personal savings to reducing staff hours.

“At the same time, what’s striking is how quickly operators are adapting. From rethinking delivery models to creating entirely new revenue streams, the sector is evolving fast. But adaptability alone isn’t enough — these businesses need financial products that reflect how they actually trade. Real-time visibility, forward-planning tools and flexible funding will be essential to help them navigate what remains a very challenging environment.”

Approximately three hospitality venues shuttered per day in the first quarter of 2026 as soaring operational costs took a heavy toll on the sector.

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