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Insider UK
Insider UK
Business
Peter A Walker

Scottish hospitality sector on ‘life support’

Several Scottish hospitality leaders have joined forces to help safeguard around 220,000 jobs, as the industry faces its third and toughest winter since the start of the pandemic.

Edinburgh’s Brewhemia, McKays Hotel in Perthshire, Links House at Royal Dornoch in Sutherland, Ingliston Country Club & Hotel in Renfrewshire, Tyneside Tavern and Mazzoli Italian Kitchen in East Lothian, and Banchory Lodge in Aberdeenshire are among more than 50 hospitality firms backing a new campaign.

Energy is the biggest reported cost hike, on top of increases in food and labour bills this winter. Many business owners believe this could be a stretch too far without the support of initiatives like Help Out Hospitality, which is being led by food and drink procurement company The Full Range.

Since last year, commercial energy bills are around 400% higher, food bills are up by around 20% and labour costs have increased by around 10%.

The Bank of England’s biggest interest rate rise since 1989 - up by 0.75 percentage points to 3% - is also having an impact on consumers, who are already starting to tighten their belts and cut spending on eating out.

A new commission-free Help Out Hospitality online platform is now live for hospitality businesses to promote offers, attract direct bookings and allow customers to enjoy the best value over the quieter winter months.

Richard Drummond, owner of McKays Hotel in Pitlochry, said: “Help is precisely what the hospitality and tourism industry requires after the past three years of closures, staffing issues and now spiralling costs.

“This scheme helps everyone - our suppliers, and the end user - allowing us to pass the discount we receive on to our customers.“

Alastair Dobson, managing director of Arran Dairies and Taste of Arran, said: “The initiative couldn’t have been launched at a better time.

“The cost-of-living crisis is meaning customers are ever more careful with their household budget, so creating a no commission platform which allows businesses to promote their offers and drive customers to direct book is excellent.”

Brian Breslin, general manager at Dole Foodservice in Edinburgh, said: “Collective challenges require a collective response from all stakeholders, so we're proud to be playing our part in supporting a creative initiative like Help Out Hospitality; one dedicated to providing very practical support to drive extra bookings and generate increased customer footfall.”

The campaign was spearheaded by Barry Knight, director of The Full Range, who added: “Scotland’s hospitality industry employs around 220,000 people, which makes up around 8.6% of the country’s total jobs.

“The current cost-of-living crisis is having a significant impact on each and every operator; regardless of business size.

“The sector really is on ‘life support’ if help is not provided to trade more efficiently through the winter trading period, so we think Help Out Hospitality will go some to supporting businesses where they need it most at this critical time.”

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