Over 40% of UK hospitality businesses at a loss
Friday, June 9, 2023
The Hospitality industry is facing a major financial crisis in the UK, as new data show that more than two tenths of businesses across the industry currently sustain an loss
More than two fifths of Britain's hospitality industry is cutting costs, with a huge majority expecting price rises next year, new research from Peckwater Brands has found.
250 high-level UK hospitality policy leaders in May 2023 were surveyed for market research.
The study found that more than half of hospitality establishments were adversely affected by rising commodity costs (53%) and a similar number of businesses were hit by record energy bills (50%).
Research also found that one in three (34 per cent) would not believe their business will survive the next 12 months.
A third (34 per cent) are struggling with higher interest rates, while 29 per cent are facing rising rents professionally.
Most (55%) have difficulty in finding sufficient staff to work effectively.
Sam Martin, Chief Executive Officer of Peckwater Brands said: "Conditions for hospitality businesses are undoubtedly tough, with record food inflation, skyrocketing energy bills and falling consumer spending all having a notable impact. Our research shows lays bare
the stark reality; so many establishments are loss-making and many fear for their survival.