Over a third of hospitality businesses are at risk of going bust in the new year, according to a new survey by a group of trade associations.
The Q4 hospitality members' survey showed that 35% of respondents expected to operate at a loss or be unviable by the end of 2022.
Soaring energy and food prices are putting a strain on the hospitality sector, with 96% experiencing higher bills and facing inflationary food prices..
The cost of living crisis is also affecting customers' spending habits, with 77% of operators reporting fewer people eating and drinking out and 85% saying they expect the situation to worsen as the crisis continues.
Around nine in ten respondents were unhappy with the levels of support the Government is offering to businesses, saying they felt either unconfident or pessimistic that current policies would protect the industry in the next six months.
Uncertainty surrounding continued staff shortages is also fueling business owners' concerns, with confidence in the sector dipping lower than it was during the Covid-19 pandemic.
In a joint statement, the trade associations said:
"If urgent action isn't taken, it is looking incredibly likely that we will lose a significant chunk of Britain's iconic hospitality sector in the coming weeks and months."
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