After rising energy prices and Food and wage growth in Britain, only 29% of restaurant owners are optimistic about the future. The remaining 86% expressed great concern about Up to 81% increase in energy cost, This data was collected by CGA through NielsenIQ british hospitality instituteuk hospitality, British Beer Association and Pubs and Hospitality Ulster.
About a year back the electricity bills were skyrocketing Russian invasion of Ukraine, which led to a significant increase in gas prices. As a result, many companies were forced to enter into long-term fixed-rate contracts, which negatively affected their profitability and led to store closures.
More than 150 pubs in England and Wales have closed permanently
according to the analysis of Official UK Government Data and done by Altus Group last April, More than 150 pubs have closed for good in communities across England and Wales during the first three months of 2023. This shows a growth of 60% over the previous year. Industry associations have come together to warn that if cost pressures are not eased soon, more permanent store closures will follow.
In a joint statement, these organizations said: “The energy crisis has pushed pubs, bars and restaurants to their limits. Simply put, this data is extremely worrying for thousands of otherwise viable hospitality businesses. The government must understand that that this crisis is not only affecting business today, but will also have a wider and more lasting impact in the future. It will affect local employment, disrupt supply chains and remove essential community centers in towns and cities across the UK Will give.” It must be remembered that the sector received up to £1,000 million from the government to recover from the Covid crisis during the pandemic.