New industry-wide data shows just 29% of hospitality businesses feel optimistic about the next 12 months, with energy their biggest concern, prompting an alliance of trade bodies to once again make a plea for Government to direct energy suppliers to offer fair rates.

The survey asked people running pubs, bars, restaurants and other hospitality businesses about their operations and prospects and highlighted how critical the energy crisis has become for the industry over the past year; with 86% of respondents concerned or very concerned about energy costs and the average bill now up by 81% since last year and three times more than in 2021.

Data collected by CGA Insight on behalf of the British Institute of Innkeeping, UKHospitality, the British Beer and Pub Association and Hospitality Ulster showed businesses that were forced into long-term fixed rate contracts between July and September 2022, as energy prices continued to rise, felt the least optimistic about their prospects over the next 12 months.

Of those businesses that locked into a contract at the peak of the energy crisis between July and September almost half (46%) felt their business was at risk of failure in the next 12 months, with 92% citing energy prices as a significant contributor to that risk. These businesses were also less likely to have cash reserves and almost half (46%) of all respondents had less than three months’ worth.

Responding to the data, BII, BBPA, UKHospitality and Hospitality Ulster are once again calling on Government to insist energy suppliers offer renegotiations to businesses locked into sky high contracts, or at least offer financial support to those at acute risk.
 
In a joint statement the trade bodies 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. The Government must recognise this crisis isn't just crippling businesses now. Left unresolved it will have a lasting wider impact long into the future, impacting local employment, supply chains and removing essential community hubs from villages, towns and cities across the whole of the UK.

"Suppliers must be instructed to offer renegotiation to businesses locked into long-term, high-cost contracts, whilst businesses on the brink should be offered direct, targeted support. The people running pubs, bars and restaurants in neighbourhoods across the UK want to remain there and provide the absolute best for their communities but feel they are fighting a losing battle, they need support now."

In addition to call for immediate action on energy costs, respondents to the survey also cited relief to VAT and wholesale reform to business rates as longer-term measures to support the industry and enable businesses to invest and grow. 

Becoming laptop-friendly and allowing remote working in pubs can be a smart decision, as it can provide several benefits for both the pub and the remote workers. Here are some reasons why pubs should consider becoming laptop-friendly & allow remote working:

● Increased customer satisfaction: By allowing customers to use their laptops, pubs can increase customer satisfaction and loyalty. Many people appreciate the opportunity to work or study in a relaxed and comfortable environment outside of their usual workspace, and pubs that cater to this need are more likely to attract and retain customers.

● Potential for increased sales: Laptop users are often willing to spend more time in a pub, which means they may order more food and drinks than customers who only stay for a short period of time. Additionally, laptop users may be more likely to return to the pub, making them valuable repeat customers.

● Adaptation to changing customer needs: In today's digital age, many people rely on their laptops and mobile devices for work, communication, and entertainment. By accommodating these needs, pubs can stay relevant and attract a wider range of customers.

● Competitive advantage: In areas with many pubs, offering laptop-friendly amenities can set a pub apart from its competitors and attract a unique demographic of customers.

● Increased foot traffic and revenue: Remote workers may stay in the pub for an extended period of time, which can increase the foot traffic and revenue for the pub. This can be especially beneficial during off-peak hours when the pub may not be as busy.

● Diversified customer base: By catering to remote workers, pubs can attract a more diverse customer base. This can include freelancers, digital nomads, and remote employees who may be looking for a comfortable and welcoming workspace outside of their home.

● Improved productivity and creativity: For remote workers, the change of environment can provide a boost in productivity and creativity. By providing a quiet and comfortable workspace with access to Wi-Fi and power outlets, pubs can become a productive and inspiring workplace for remote workers.

● Positive brand reputation: Pubs that cater to remote workers can build a positive brand reputation as a welcoming and inclusive space. This can attract not only remote workers but also other customers who appreciate the pub's commitment to creating a comfortable and supportive environment.