The Scottish Licensed Trade Association (SLTA) has warned that the sector faces ‘unprecedented challenges’ and has called for urgent support to survive the winter.
This latest member survey, which represents more than 10% of Scotland’s on trade premises, highlights that 87% are requesting government backing.
In terms of staffing, 40% of outlets are employing significantly fewer staff, while recruitment post-Brexit remains an issue.
As for trading conditions, 5% have not re-opened post-Covid, while half are trading at significantly lower levels than 2019.
A further half of hospitality outlets are carrying significant pandemic-related debt, while owners have identified rising costs as the biggest threat to their businesses.
One in four venues are facing an increase in energy cost of more than 500% in the coming months.
With this economic outlook, 45% expect to reduce their opening hours.
The quantitative research comes from more than 600 outlets, covering the length and breadth of the country, supported by food and drink chains and independent pubs, bars and hotels in Scotland’s hospitality sector.
SLTA managing director Colin Wilkinson said: “Many of our respondents are still carrying significant Covid debt and are dealing with the challenges of Brexit, but we are now facing even bigger hurdles with rising costs, staff shortages and enormous increases to energy costs.
“For many outlets it won’t be economically viable to remain open and one in 10 of our respondents plan to close during the winter months and nearly one in two expect to reduce opening hours.
“Our pubs and bars have worked very hard post-Covid and Brexit to showcase Scotland’s hospitality industry, but with a tsunami of rising costs and low consumer confidence we urgently call on local and national governments to help us through the winter.
“We must protect the jobs that outlets provide directly and the associated jobs in the wholesaling, brewing/distilling and food-producing sectors,” he added.
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