A survey has 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.
Alongside this, the survey, which was carried out by four trade bodies, found that 77% of respondents reported decreased footfall, with the majority expecting this to worsen into the winter months.
Higher energy costs were reported by 96% of respondents, whilst 93% said they face increased food prices.
In a joint statement, the trade associations said: “The vulnerability of the sector due to soaring energy costs, crippling rises in the cost of goods and dampening consumer confidence is on full display in this survey and if urgent action isn’t taken, it is looking incredibly likely that we will lose a significant chunk of Britain’s iconic hospitality sector in the coming weeks and months.
They added: “Further business rates relief is absolutely critical to avoid businesses facing a cliff-edge in April next year.”
UK Hospitality, The British Beer and Pub Association, The British Institute of Innkeeping and Hospitality Ulster all worked on the report, which was based on a survey completed by industry members.