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Pubs and restaurants are facing an uphill battle to survive with energy costs still up an average of 80 per cent against last year.
A new survey suggests a meagre 29 per cent of hospitality businesses “feel optimistic” about the next 12 months, with energy prices their biggest concern.
In response, an alliance of trade bodies has called on the government to step in and direct energy suppliers to cut rates.
UKHospitality, the British Institute of Innkeeping, the British Beer and Pub Association, and Hospitality Ulster surveyed bosses at pubs, bars, and restaurants to talk about their prospects.
Nearly all highlighted how critical the energy crisis has become for the industry over the past year, with 86 per cent of respondents remaining worried about energy costs.
The average bill is now up by 81 per cent since last year and is a shocking three times more than in 2021.
Data collected by CGA Insight on behalf of the trade bodies also showed some businesses were forced into long-term fixed rate contracts between July and September 2022. Of those who were forced into one of these, almost half (46 per cent) felt their businesses were at risk of failure — especially smaller, independent venues that had little by way of cash reserves.
More must be done
UKHospitality and the rest of the group said it wants the government to “insist” energy suppliers offer renegotiations to businesses locked into higher contracts, or at least offer financial support to those at acute risk.
In a joint statement, the trade bodies said: “The energy crisis has been pushing pubs, bars and restaurants to breaking point for a year now.
“Put simply, this data is extremely worrying for thousands of otherwise viable hospitality businesses…
“Left unresolved, it [the energy crisis] will have a lasting wider impact long into the future, impacting local employment, supply chains and removing essential community hubs from villages, towns and cities across the whole of the UK.”
The organisations did concede the government’s Energy Bill Relief Scheme provided some respite for operators but said more needs to be done to reassure them after it finished in March.
“The people running pubs, bars and restaurants in neighbourhoods across the UK want to remain there and provide the absolute best for their communities but feel they are fighting a losing battle, they need support now,” said the statement.
Respondents to the survey also cited measures such as relief to VAT and business rates which would better enable businesses to invest and grow.