Q3 2025 - Hospitality operating at only 85% of capacity, new survey reveals
Despite a strong summer of trading, cost increases have forced almost three-quarters of businesses to operate at or below 85% of required capacity.
The latest member survey from hospitality trade bodies reveals that tax rises have forced businesses to dramatically cut their workforce, with 69% of respondents operating at or below 85% of required capacity.
Q2 2025 - One-third of hospitality businesses now operating at a loss
Following the £3.4bn in extra costs that hit the sector in April, a significant number of pubs, bars, restaurants, and hotels are now losing money and are at risk of failure
A new survey of hospitality operators from across the sector lays bare the impact of recent increases to employer National Insurance Contributions (NICS) and the changes to Business Rates on hospitality businesses. The survey reveals that one third of hospitality businesses are now operating at a loss. This represents an 11 percentage point increase on the last quarter.
Q1 2025 - April cost increases could force 70% of hospitality businesses to reduce employment
A joint survey by leading hospitality trade associations has revealed how the sector fears it will be drastically affected by new employment costs and the reduction in rates relief come April.
We highlighted the strong record the sector has in delivering economic growth, with hospitality one of the top contributors to GDP growth in November and December 2024 and called for a delay to the changes to the employer NICs threshold.
Q4 2024 - Market pessimism rises, both in the sector and their own businesses
Surveyed ahead of the Budget, market pessimism has significantly risen, with over half of the market no longer confident in the industry’s prospects over the next 12 months.
It also revealed the impact if business rates relief was ended or significantly reduced. Three quarters of businesses would see their profits further pressurised, but the effects would also be felt by staff, who would see hours, benefits and training cut; half cancelling investments; and over a quarter closing sites.
Q3 2024 - Hospitality costs rise sharply, as sector unites behind rates reform
The survey reveals how almost every hospitality business has seen steep increases in wages and food costs. Year-on-year, 95% of hospitality businesses have experienced increased wage costs. It’s a similar story for food (89%), insurance (84%) and energy (57%) costs.
Hospitality businesses are overwhelmingly in favour of reforming business rates, a government manifesto commitment, to help reduce costs, which must be a priority at the Budget, with 80% of respondents clear it would have a positive impact on their business.
Q2 2024 - Hospitality ready to invest, but cost barriers remain
The survey showed that pubs and hospitality venues have the appetite to invest in the future of their businesses, despite the wide range of cost pressures they continue to face.
Q1 2024 - Quarter of hospitality has run out of money, as VAT cut tops priority asks
The stark new survey results show that a quarter of hospitality businesses have no cash reserves and a further 29% have less than three months’ worth.
Q4 2023 - Businesses will reduce investment and cut staffing levels without business rates support
New figures demonstrate the importance of the Chancellor extending the hospitality sector relief and freezing the multiplier at the Autumn Statement, with 38% of hospitality venues failing to make a profit.
Q3 2023 - Worker shortage fix needed if hospitality’s World Cup boost to continue
Hospitality businesses saw a 33% increase in sales during the World Cup final, despite ongoing staff shortages.
Q2 2023 - Businesses struggle to remain optimistic with energy costs up 80%
New industry-wide data shows just 29% of hospitality businesses feel optimistic about the next 12 months, with energy their biggest concern.
Q1 2023 - Hospitality energy bills to almost double as support falls away
Businesses expect an 82% rise in their energy bills when the Government’s support is significantly reduced in April, according to a new hospitality sector survey.
Q4 2022 - Third of hospitality businesses at risk of going bust due to soaring costs
More than a third of the UK’s hospitality sector is at risk of business failure in early 2023 due to the cost of doing business crisis, according to analysis of a new survey by UKHospitality, the British Beer and Pub Association (BBPA), the British Institute of Innkeeping (BII) and Hospitality Ulster.
