London Daily

Focus on the big picture.

Almost 4,600 hospitality firms close in year as energy bills rocket – figures

Almost 4,600 hospitality firms close in year as energy bills rocket – figures

Restaurants suffered a particularly damaging year, with the number of licensed restaurants shrinking by 7.8% over the year.
More than 12 hospitality venues have shut each day in Britain over the past year amid the pressure of soaring energy costs, according to figures.

High inflation and the cost-of-living crisis have resulted in the closure of 4,593 licensed hospitality premises over the year to March, according to the latest hospitality market monitor from industry experts at CGA by NIQ and AlixPartners.

Nevertheless, the latest figures indicated a slight slowdown in closures in recent months amid stronger than expected consumer spending.

The new data showed that the number of hospitality venues has decreased by 4.3% since March 2022, representing 12.6 closures each day.

Restaurants suffered a particularly damaging year, with the number of licensed restaurants shrinking by 7.8% over the year.

The data comes a week after Italian dining chain Prezzo revealed plans to shut 46 restaurants as a result of soaring energy and food costs, putting 810 jobs at risk.

Meanwhile, there was a 2.5% decline in high street pubs over the year.

Karl Chessell, CGA by NIQ’s director for hospitality operators and food, said: “Each of the 4,593 closures over the last 12 months represents a sad loss of jobs and the permanent withdrawal of a community asset.”

The overall figures showed that 756 venues shut in the first three months of 2023, although this represented a slowdown in the recent rate of closures. It was the equivalent to 8.4 closures each day.

Mr Chessell added: “It is at least encouraging that losses have slowed in the first few months of the year — a welcome indicator that demand for hospitality remains strong.

“However, the recent cut in Government support on energy bills, alongside a hike in minimum wage rates and the ongoing tax burden, now leaves thousands more fragile venues at risk of closure.”

Graeme Smith, AlixPartners’ managing director, said: “Tellingly, this latest study underlines the growing divide between larger and smaller operators, reflecting the varied ability to withstand the continued headwinds the sector faces.

“The closure rate of independent businesses – (which are) the life blood and entrepreneurial driving force of the sector – continues to vastly outstrip the better-funded corporates and the branded operators.

“It highlights the need for Government support to be extended, especially on energy costs, if small (often family-owned) businesses are to survive.”

On Friday, trade bodies representing pubs and hospitality businesses called for urgent Government intervention over energy costs and contracts.

The British Beer & Pub Association, UKHospitality and British Institute of Innkeeping wrote to Amanda Solloway, minister for energy consumers and affordability, to call for further support to prevent “thousands of job losses”.

A Government spokesperson: “We have faced a period of exceptional economic challenges, caused by the pandemic and Putin’s illegal invasion of Ukraine.

“Through this period, the Government has acted swiftly to provide businesses with an unprecedented package of support which, as of April, has saved them £5.9 billion on energy costs – amounting to over £30 million a day and enabling some to only pay around half of predicted wholesale energy costs.

“Global energy prices have fallen significantly and are now at their lowest level since before Russia’s illegal invasion of Ukraine. The new level of government support reflects this welcome fall in prices, but we will continue to stand by businesses, as we have done over the winter.”
Newsletter

Related Articles

London Daily
0:00
0:00
Close
News roundup
Good day, everyone! We've got some gripping stories for you today, spanning from the Middle East to Europe, and even a touch of Hollywood.
Britain’s Refugee Visa Rules Stranding Children in War Zones
UK Elections Predict ‘Electoral Extinction’ for PM Sunak’s Conservative Party
Italian Activist Ilaria Salis Returns Home After Election to European Parliament
Good morning!
England Faces Serbia in Euro Opener with Defensive Concerns
Dermatologist Warns Against Sunbed Usage
Fake Pro-Reform UK Social Accounts and Their Influence on Elections
UK Man Jailed for Non-Consensual Condom Removal
Reform UK Surpasses Conservatives in Historic Poll
US, Britain, Canada Accuse Russia of Interference in Moldova’s Election
Taylor Swift Fans Create Seismic Activity in Edinburgh
Sunak Aide Under Investigation for Election Bet
Labour Leader Starmer Focuses on Wealth Creation for Upcoming UK Elections
G7 to Use Frozen Russian Assets for $50 Billion Ukraine Aid
Anti-Israel Irish MEP Clare Daly LOST her seat in the EU Election
Johnson & Johnson Settles Talc Safety Claims for $700 Million
EU Urged to Welcome Skilled Russians to Weaken Putin
EU Elections Overview: Far-Right Gains and Major Political Shifts
Israel Rescues Four Hostages from Gaza
Emmanuel Macron Calls for Snap Election
Jordan Bardella: Young Far-Right Leader Poised for Future Political Influence in France
World's Oldest Privately Owned Book Auctioned for $3.8 Million
Animal Rights Activists Deface King Charles' Portrait in Protest
Dutch Military Intel Uncovers Extensive Chinese Cyber Espionage
Turkish Student Arrested for Using AI to Cheat in University Exam
Rise in Dengue and Other Mosquito-Borne Diseases in Europe Due to Climate Change
EU Elections Overview: Far-Right Gains and Major Political Shifts
Far-Right National Rally Dominates France's EU Vote
Macron Calls Snap Legislative Elections After Far-Right Victory
Far-Right Gains Significantly in EU Election
UK Job Market Shows Signs of Recovery
Orban’s Fidesz Party Wins Majority in Hungary’s EU Elections as New Challenger Emerges
Meloni's Far-Right Party Wins European Elections in Italy
Key Insights from the European Union Elections
European Union Elections and Rise of Far-Right Parties
England Loses Over 260,000 Social Rent Homes in a Decade
Campaigners Urge Government to Block Shein's FTSE Listing
First NHS AI-Run Physiotherapy Clinic Launches This Year
British TV Presenter Michael Mosley Found Dead on Greek Island
Ukrainian Forces Claims First Strike on Russia's Su-57 Fighter Jet
Macron Dissolves Parliament and Calls Snap Elections
Russia Adds Yulia Tymoshenko to Wanted List
UK Foreign Secretary David Cameron Tricked by Hoax Caller Posing as Former Ukrainian President
Kate Middleton's Absence from Colonel's Review Due to Chemotherapy
UK Foreign Secretary Deceived by Prank Video Call
Sunak Criticised Over D-Day Exit in BBC Debate
Rishi Sunak Apologizes for Leaving D-Day Commemoration Early
UK Woman Sentenced After Causing Fatal Crash While Sending Selfies
×