Pubs may be forced into offering Christmas dinners at a loss this winter as the cost of ingredients has risen above previously advertised meal prices.
Morning Advertiser, the pub trade’s bible, found that Christmas menus have been ‘complicated’ by soaring prices, with food inflation hitting 14.3% according to data from the British Retail Consortium.
That has caught out pubs which advertised Christmas deals based on the cost of ingredients earlier in the year.
Joe Cussens, managing director of Bath Pub Company said “If you say it's £35 for a three-course meal and the price of turkey and smoke salmon goes through the roof, you’re stuck having to honour that price.”
The hospitality sector has recently lamented the upcoming rail strikes, set to take place over the Christmas period, which has reportedly sparked a surge in festive party cancellations.
Bloomberg reported that pubs and restaurants have suffered a collapse in Christmas party bookings due to next week’s strikes.
Industry chiefs suggest the downturn is as bad as last year when cases of the Omicron variant of Covid-19 were surging and that ruined last Christmas.
Kate Nicholls, chief executive officer of the trade body UK Hospitality, said businesses were reporting cancellation rates of as much as 30%, which could blow a £1.5bn hole in revenues.
While the winter World Cup has been a welcome boost for pubs up and down the country, the industry continues to warn that mass closures are on the horizon.
A survey, carried out by four trade bodies, found that roughly 35% of hospitality businesses expect to be operating at a loss or be unviable by the end of the year, due to rising operating costs and lessening consumer confidence.
Higher energy costs were reported by 96% of respondents, while 93% said they face increased food prices.
With the energy support scheme set to end in April for businesses, “Further business rates relief is absolutely critical to avoid businesses facing a cliff-edge in April next year,” the report conlcuded.