Thousands of UK pubs may go bust
More than 10,000 businesses are at risk of closure due to inflation, with rent and energy costs soaring, UKHospitality says
Britain’s hospitality sector is facing “as big a crisis, if not bigger” than during the Covid pandemic, the chief executive of trade body UKHospitality, Kate Nicholls, has told The Daily Mail.
She warned that 10,000 pubs and restaurants could soon be out of business thanks to a “perfect storm” of inflation, with soaring energy and rental costs.
“We’re already seeing a lot of independent operators handing in the keys and walking away,” she said on Sunday.
Nicholls estimates that 20,000 of UKHospitality members’ businesses are still operating at a loss and 30,000 have no cash reserves.
“I’ve never seen such a toxic cocktail of costs. It is a perfect storm,” she said.
The latest data shows inflation in the British restaurant trade is running at 13% to 17% as a result of supply-chain disruption due to the pandemic and the conflict in Ukraine, as well as higher wages due to staff shortages.
“Cost inflation means we have to trade 20% up just to stand still. We know that keys are being handed in at some tenancies,” said Emma McClarkin, chief executive of the British Beer & Pub Association.
For more stories on economy & finance visit RT’s business section
Discover More
Unfinished behemoth ship destined for scrap
Unfinished Global Dream II cruise ship is set to be sold for scrap with the same fate looming over its...
EU country to launch test route for Ukrainian grain – envoy
The cargo will travel through Poland with the help of German railways Berlin is planning to set up a test...
‘Casus belli’: What Kaliningrad blockade means for Russia
The transit of some goods through Lithuania has been blocked, raising concerns over shortages in Russia's exclave Lithuania blocked the...
World faces shortages of popular food products – Bloomberg
Supply chain disruptions are hurting global businesses, media reports Over the past few months, many seemingly random foods have become...
Ruble hits 7-year high vs dollar
The Russian currency continues to strengthen despite the Central Bank’s call to lift capital controls The ruble soared on the...
Russia to help rebuild Donbass — trade minister
The necessary assistance for reviving the region’s metal industry is already underway, Denis Manturov has told RT Moscow will throw...