UKHospitality: A third of businesses 'at risk of going under'

23 February 2023 by
UKHospitality: A third of businesses 'at risk of going under'

A third of hospitality businesses are at risk of failure in the next year despite sales exceeding pre-Covid levels, UKHospitality has warned.

The trade body's Quarterly Tracker, produced in association with CGA, showed that industry revenue was up 4.2% in 2022 compared to 2019, but down 13% in real terms when inflation was accounted for.

Cost pressures, ongoing labour shortages and Covid-19 debt, have left many hospitality businesses in a "perilous position", UKHospitality said.

The Q1 Hospitality Members Survey found that almost a third (32%) of businesses were at risk of failure in the next year.

UKHospitality has urged Chancellor Jeremy Hunt to do more to tackle inflation in his Spring Budget next month. The trade body is calling for intervention in the energy market, Apprenticeship Levy reform and a new business rates multiplier.

UKHospitality chief executive Kate Nicholls said that venues were unable to take advantage of public demand "as they drown amidst price rise after price rise".

"Venues are simply unable to pass prices onto the consumer at the same rate they are experiencing their own costs rise," she said.

"People up and down the country want to support their local pubs, restaurants, coffee shops and hotels, to name just a few. If the Chancellor allows those venues to take advantage of that support, we can turn record sales into real terms growth."

Image: Dave Jacobs / Shutterstock

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