Almost half of all pubs, bars and restaurants have had to cut their opening hours as they battle 15 per cent staff shortages after Covid and soaring costs
- Sector’s woes revealed in new report by UKHospitality and research firm CGA
- This could be having negative impact of about 16 per cent of company revenues
- Around a third of firms have had to close for at least a day as a result of struggles
Almost half of all pubs, bars and restaurants have had to cut their opening hours amid soaring costs and 15 per cent staff shortages after Covid.
The hospitality sector’s recovery from the pandemic has been stymied by both the increased prices venues have had to pay, as well as continued labour shortages, a new report by industry body UKHospitality and research firm CGA reveals.
The research suggested that this could be having a negative impact of about 16 per cent of company revenues.
About 45 per cent of businesses surveyed said they have reduced their trading hours due to staff issues, with a third saying they had to close for at least a day.
Operators have said that some employees left for other sectors during the long periods of closure and furlough in the pandemic, while some EU workers have also returned to the continent.
The report highlighted that 77 per cent of companies in the industry have increased pay in an effort to retain and attract, with an average pay increase of 11 per cent over the past year.
About 45 per cent of businesses surveyed said they have reduced their trading hours due to staff issues, with a third saying they had to close for at least a day
The hospitality sector’s recovery from the pandemic has been stymied by both the increased prices venues have had to pay, as well as continued labour shortages. Pictured: Kate Nicholls of UKHospitality which has published the report into the sector’s woes
Kate Nicholls, chief executive officer of UKHospitality, said: ‘The sector has proved its value to consumers post-pandemic, with sales back to 2019 levels but the labour shortage, inflationary cost pressures and dropping consumer confidence make it extremely difficult for any business to achieve real-terms, year-on-year growth and there is little prospect of a respite on the horizon.
‘Operators will continue to work hard and creatively to meet these challenges and with positive action from Government, such as root and branch reform of business rates, a system that disproportionally taxes hospitality, the sector will be able to drive investment in local economies, create jobs and play a full part in the UK’s economic recovery.’
Karl Chessell, a director for hospitality operators and food at CGA, said: ‘While underlying demand is high, inflationary pressures are now squeezing consumers’ spending and hurting both profit margins and investment plans.
‘Severe shortages of staff will continue, and business confidence, which was solid at the start of the year, has been impacted.
‘These challenges are largely out of hospitality’s hands and while the sector received solid support during the pandemic from the Government, which rightly recognised its importance to the UK economy, it deserves more help now.’
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