A third of hospitality businesses say they’ll go bust in a year

One third of UK hospitality businesses believe they won’t survive the next 12 months, as high energy bills, inflation, and the cost-of-living crisis continues to put a squeeze on the industry.

According to a study from Peckwater Brands, 70% of 250 senior figures within the industry said they would also be raising their prices in the coming months.

Hospitality businesses have also been severely affected by industrial action, with UKHospitality stating earlier this month that the cumulative impact of strikes on the industry has cost businesses £3.25bn.

A BrewDog chief executive also recently called on the Government to “get a grip” on industrial action.

The study from Peckwater Brands also found that over half (55%) of hospitality businesses are struggling to find enough staff to operate, while 70% reported lower customer spending than a year ago.

The research also found that of those surveyed, 44% were operating at a loss.

Sam Martin, chief executive of Peckwater Brands, said: “Unfortunately, the challenges facing the hospitality sector will not disappear any time soon. Raising prices might be the only option available to many businesses, but with consumers wrestling with a cost-of-living crisis and seeking out lower prices wherever possible, this action could damage their customer bases.”