Hospitality sector in ‘perfect storm’ as inflation adds to Covid woes

Hospitality bosses have called for government support, as the cost of living crisis adds to pressures caused by the Covid lockdowns. Just 37% of hospitality businesses are still profitable, following the impact of rising energy, goods and labour costs. Some 45% of businesses have been forced to reduce opening hours to avoid closing permanently and 17% have no cash reserves. According to the joint survey by the British Beer and Pub Association, the British Institute of Innkeeping and UKHospitality, only 28% of pubs, bars and restaurants are considering investing in their businesses. A joint statement said: “Our industry has huge growth potential and the ability to play a critical role in the levelling up of communities in every single part of the UK, but we are still struggling to get back on our feet after a turbulent two years.” The organisations, representing 115,000 venues, said that in the past few weeks inflation had hit record levels and costs on key ingredients and utilities had rocketed, while consumer confidence had plummeted, resulting in fewer customers. They added: “We are weathering a perfect storm, but we can’t hold on forever; we need relief as soon as possible before the cost of doing business forces venues to close for good.” The Times (£)