Expert Insight
NEWS from
Kate Nicholls UKHospitality Chief Executive
Almost two-months on from ‘Freedom Day’, and guests and customers could be forgiven for thinking that the hospitality sector is well on its way to recovery. Unfortunately, they’d be sorely mistaken.
Hospitality is still grappling with the effects of the pandemic and remains caught in a perfect
storm. Chronic staff shortages, which have been exacerbated over the course of this summer by the ‘pingdemic’, and a supply chain unable to provide food, drink and other essentials on time or if at all – some pubs have been unable to open through lack of beer – are pushing some businesses over the edge.
UKHospitality is working hard to remind the Government that it must continue to work closely with and support the sector if we’re to achieve a full recovery. Not to do so will leave thousands of pubs, bars, clubs, restaurants and hotels facing closure and untold job losses as a result.
Joint research by UKH, with the British Beer and Pub Association (BBPA), and The British Institute of Innkeeping (BII), has revealed that amongst the tens of thousands of venues in the UK, 100% had job vacancies while a third are experiencing vacancies at a managerial level. Research among our membership implies shortage of more than 200,000 industry workers. The ‘pingdemic’ further exacerbated this issue over this summer, with thousands having already left the
sector fearing they have no future in an industry ravaged by the pandemic; the disruption caused significantly impeded the sector’s ability to restore confidence amongst both consumers and prospective employees.
Those research numbers don’t get any better when it comes to the supply chain. A whopping 94% of hospitality businesses are experiencing supply difficulties: 66% have reduced product lines, 63% have had deliveries delayed, 60% have had products not arrive at all, while 56% are being hit with significant price hikes.
Big issues remain. And when it rains, it pours, because the big, black cloud of a return to a 20% VAT rate is waiting just over the horizon, in
2022, and this will undoubtedly have a negative impact on so many hospitality businesses. Our research shows that 43% of operators would cut investment, 30% would become loss-making, 28% would cut jobs, 22% would freeze recruitment, and 21% would face business failure if we returned to 20% VAT. All exceptionally compelling reasons for the hospitality VAT reduction to continue beyond March next year.
‘Freedom Day’ most certainly did not flick a switch that made everything alright again in the world of hospitality. For the sector to enjoy anything like a sustainable recovery, Government must continue working with us to put in place a trading environment that at the very least gives businesses the opportunity to bounce back strongly.
6
September 2021
www.venue-insight.com
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