Only 37% of hospitality firms still profitable

Many UK businesses have been affected by rising costs, but hospitality leaders are calling on the government for help.

The hospitality industry would like government support due to pressure caused by inflation, as well as a new tax and investment regime. They'd additionally like reforms which could provide growth.

Currently, only 37% of hospitality businesses are profitable, according to data from a survey. The largest problem facing businesses are:

1. rising costs of energy (74%)
2. goods (55%)
3. and labour (54%)

Furthermore, due to the economy, only 28% of businesses in hospitality (such as pubs, bars and restaurants) are even considering investing back into their business.

Even with the post-Covid hospitality strategy the government released almost a year ago, 45% of businesses have had to reduce their opening hours, allowing them to avoid closing their doors permanently. Another 17% of businesses have no cash reserves at all.

Article by Small Business