Hospitality Ulster warns businesses are at ‘breaking point’

Hospitality Ulster has joined a range of industry bodies in demanding the government in London acts to tackle crippling energy bill which have surged by an average of 81% in the past year alone.

The lobby groups have revealed that less than a third of hospitality businesses are optimistic about their future after swallowing mammoth energy price increases, as well as more expensive food and wage bills.

Data collected by NielsenIQ on behalf of the British Institute of Innkeeping, UKHospitality, the British Beer and Pub Association and Hospitality Ulster revealed the extent of the current turmoil facing the industry.

The research showed that just over a quarter (29%t) of hospitality businesses feel optimistic about the next 12 months.

Business owners said they are particularly concerned about energy costs, with 86% of firms saying it was a worry.

It comes around a year since energy bills rocketed after the Russian invasion of Ukraine sparked a sharp uptick in gas prices.

Scores of pubs and disappearing every month across the UK, and the trade bodies have joined forces to warn that more venues will shut for good if cost pressures do not ease soon.

In a joint statement, the organisations said: “The energy crisis has been pushing pubs, bars and restaurants to breaking point for a year now.

“The Energy Bill Relief Scheme provided a short respite but with that falling away last month businesses are back to paying high costs, with no end in sight for the thousands locked into contracts who will be obligated to pay extortionate rates well into next year.

“Put simply, this data is extremely worrying for thousands of otherwise viable hospitality businesses.

“No profits means nothing to invest back into businesses, no cash reserves means nothing to fall back on, and businesses being forced to close means important, irreplaceable assets being lost from local communities and economies across the country forever.”

Last week Hospitality Ulster joined with Manufacturing NI and Retail NI under the umbrella of Trade NI to launch a blueprint for economic growth and prosperity in Northern Ireland over the next 10 years and beyond, with a focus on slashing VAT to make the region more accessible and attractive for both commerce and tourism.

Hospitality Ulster chief executive Colin Neill says: “Although inflation has fallen, food prices continue to soar. The sector is being taxed out of existence, businesses continue to grapple with supply chain disruptions and a labour shortage crisis, and no Executive means no direction.

“Businesses are hanging on by a thread, struggling on to stave off the spectre of closure.”