UKH Warns of Persistent Inflation Due to Rising Business Costs

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The UK Hospitality (UKH) association has issued a warning about the potential for “entrenched inflation” as businesses face mounting costs. Like many others, the hospitality industry is grappling with significant increases in expenses, posing a risk of long-term inflationary pressures.

The cost surge is attributed to various factors, including rising energy prices, escalating wages, and the continuous impact of supply chain disruptions. Businesses across the sector are experiencing financial strain as they navigate these challenges, which could have far-reaching consequences for the overall economy.

The hospitality sector relies heavily on energy, and the recent surge in energy prices has put substantial pressure on businesses’ operating budgets. Additionally, wages have been on an upward trajectory, partly influenced by labour shortages and increased competition for skilled workers. While higher wages are essential for attracting and retaining talent, they contribute to businesses’ cost burden.

Furthermore, the ongoing disruptions in supply chains have led to increased transportation costs and shortages of essential goods. This situation has forced businesses to find alternative sourcing options or absorb higher procurement expenses, impacting their overall profitability.

The combination of these factors has created a challenging environment for businesses in the hospitality sector. As costs continue to rise, there is a concern that these inflationary pressures could become entrenched, leading to long-term challenges for the industry and potentially impacting consumer prices.

In response to the situation, UKH is calling for a collaborative approach involving businesses, policymakers, and stakeholders to address the root causes of rising costs. It highlights the importance of finding sustainable solutions that can alleviate the financial burden on businesses without compromising on the quality of services or employment standards.

The implications of entrenched inflation in the hospitality sector could extend beyond the industry itself, affecting consumers, investors, and the broader economy. As such, it is crucial for all stakeholders to work together to mitigate the impact of growing business costs and safeguard the long-term stability of the sector.

In conclusion, the UK hospitality industry faces the risk of entrenched inflation due to mounting business costs. The challenges arising from energy prices, wages, and supply chain disruptions are straining businesses’ financial viability. Collaborative efforts and sustainable solutions are needed to address these issues and ensure the sector’s resilience amid the current economic climate.

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Rising Food Costs Exert Pressure on the Hospitality Industry

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Spiralling food costs are putting enormous pressure on the hospitality industry in the UK. According to a new report from Fourth, ongoing hikes in food and drink prices are causing significant challenges for hospitality operators. The supply chain fragility caused by the pandemic and the war in Ukraine is also contributing to the problem.

The report highlights that the hospitality industry is still grappling with the fallout from the pandemic, with many businesses struggling to stay afloat. Spiralling food costs are adding to the pressure, making it even more challenging for operators to maintain profitability. The supply chain disruption caused by the pandemic and the ongoing conflict in Ukraine is exacerbating the issue, making it harder for hospitality businesses to source the ingredients they need at affordable prices.

The report suggests that the hospitality industry needs to find new ways to manage rising food costs and supply chain disruptions. Operators may need to consider alternative suppliers or adjust their menus to reflect the changing availability and cost of ingredients. While the challenges facing the industry are significant, there are opportunities for businesses that can adapt and find new ways to thrive in the current environment.

Understanding Spiralling Food Costs

The hospitality industry is facing mounting pressure as food costs continue to rise. Spiralling food costs are a result of various factors, including supply chain fragility, the pandemic, and geopolitical tensions.

Food inflation has been on the rise since the beginning of 2023, with the cost of food and drink rising by 4.5% in the first quarter alone. This has put a significant strain on the hospitality industry, which is already grappling with the fallout from the pandemic and the war in Ukraine.

One of the main drivers of spiralling food costs is supply chain fragility. The Covid-19 pandemic has disrupted global supply chains, leading to shortages of key ingredients and raw materials. This has driven up prices, as suppliers struggle to meet demand. In addition, geopolitical tensions, such as the war in Ukraine, have further disrupted supply chains, leading to further price increases.

Another factor contributing to rising food costs is the increasing demand for sustainable and organic food. Consumers are becoming more conscious of the environmental impact of the food they eat and are willing to pay a premium for sustainably sourced and organic produce. This has driven up the cost of these products, putting further pressure on the hospitality industry.

The hospitality industry is also facing rising labour costs, which are adding to the pressure of spiralling food costs. The introduction of the National Living Wage has increased the cost of labour, while the shortage of skilled workers has made it difficult for businesses to find staff.

In conclusion, spiralling food costs are a significant challenge for the hospitality industry. Supply chain fragility, the pandemic, geopolitical tensions, and the demand for sustainable and organic food are all contributing to rising food costs. The industry must find ways to manage these costs while maintaining quality and profitability.

Impact on the Hospitality Industry

The spiralling food costs have put immense pressure on the hospitality industry. The rising cost of goods sold (COGS) has significantly affected the profitability of the operators. According to a report from Fourth, the average costs have gone up by 10% compared to 2019, and some operators have reported an increase of up to 40% in their food bills. The gap between the theoretical COGS and the actual price paid by the operators is also increasing, leading to a significant impact on the industry’s profitability.

Effect on Operational Costs

The rising food costs have put a severe strain on the operational costs of the hospitality industry. The operators are finding it challenging to manage their expenses, and some have had to cut down on their staff or reduce their working hours. The supply chain fragility has made it difficult for the operators to plan their inventory, leading to a shortage of ingredients or an excess of inventory that may go to waste.

Influence on Menu Planning and Pricing

The impact of the rising food costs is also visible in the menu planning and pricing of the hospitality industry. The operators have had to make adjustments to their menu, either by reducing the portion size or by replacing expensive ingredients with cheaper alternatives. The rising cost of meat, fish, and dairy products has led to an increase in the price of the dishes that include these ingredients.

The operators are also finding it challenging to maintain the balance between the quality of their dishes and the price they charge for them. Customers are becoming more price-sensitive, and any increase in the price of the dishes may lead to a drop in sales. The operators are, therefore, trying to strike a balance between the quality of their dishes and the price they charge for them.

In conclusion, the hospitality industry faces significant pressure as food costs continue rising. This upward trend is driven by various factors, impacting businesses across the supply chain. To navigate these challenges, establishments are adapting their menus, seeking cost-saving measures, and collaborating with suppliers. It is crucial for consumers and policymakers to acknowledge the strain faced by the hospitality industry and support efforts to mitigate the impact of spiralling food costs.

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High Third-Party Fees Lead to 31% of Pub Guests Booking Directly

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High third-party fees are leading to a significant number of pub guests booking directly with the establishment. According to recent statistics, 31% of guests are choosing to book directly with pubs, rather than using third-party booking sites. This trend is thought to be due to the high fees charged by third-party booking sites, which can eat into the profits of pubs and other hospitality businesses.

While third-party booking sites can be a useful way for pubs to increase their visibility and attract new customers, they come at a cost. Many sites charge high fees for each booking made through their platform, which can be a significant expense for pubs, particularly those with low-profit margins. As a result, many pubs are now encouraging guests to book directly with them, either through their own website or by phone, in order to avoid these fees and boost their bottom line.

Understanding High Third-Party Fees

Third-party fees are becoming increasingly common in the hospitality industry. These fees are charged by third-party booking platforms, such as Booking.com and Expedia, to hotels, pubs, and restaurants for facilitating bookings. While these platforms are certainly useful for businesses looking to increase their online presence, they come at a cost.

High third-party fees can have a significant impact on a business’s bottom line. In fact, a recent survey found that 31% of pub guests now prefer to book directly with the venue to avoid these fees. But what exactly are these fees, and why are they so high?

Third-party fees typically range from 15-30% of the booking price. For example, if a guest books a room for £100 through a third-party platform, the hotel may only receive £70-85 of that booking. This is because the platform takes a cut of the booking price as a commission.

While this may not seem like a huge amount, it can quickly add up. For a business that relies heavily on third-party bookings, these fees can eat into profits and make it difficult to compete with other businesses that are not subject to the same fees.

One reason why third-party fees are so high is that these platforms invest heavily in marketing to attract customers. This includes advertising on search engines, social media, and other online platforms. The cost of these marketing efforts is passed on to the businesses that use the platform in the form of higher fees.

Another reason why third-party fees are high is that these platforms offer a range of services to businesses, including customer service and payment processing. While these services are certainly useful, they come at a cost, which is passed on to the businesses that use the platform.

Strategies

Pubs have recognized this shift in guest behaviour and are taking proactive measures to incentivize direct bookings. They are implementing various strategies, such as promoting exclusive offers, loyalty programs, and personalized experiences available only to guests who book directly. These efforts aim to provide a compelling value proposition that encourages guests to bypass third-party sites and establish a direct connection with the pub.

Additionally, the COVID-19 pandemic has further highlighted the advantages of direct bookings for pub guests. Direct communication with the pub enables better flexibility, personalized customer service, and the ability to address any specific requests or concerns effectively.

In conclusion, the escalating fees associated with third-party booking sites have led to a significant portion of pub guests choosing to book directly with the establishments. This trend reflects a growing demand for price transparency and the desire to avoid additional costs. By promoting direct bookings and offering enticing incentives, pubs can capitalize on this shift in consumer behaviour, foster stronger relationships with their guests, and enhance their overall guest experience.

The Pubs Advisory Service can help your pub business to become more profitable. If you need help, then please get in contact with us today by clicking HERE.

Respect Job Candidates as Valued Guests: A Guide to Creating a Positive Hiring Experience

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When hiring new employees, it’s essential to treat potential candidates with the same level of respect and hospitality that you would extend to your valued guests. Just as you strive to provide exceptional service and create a welcoming environment for your customers, adopting a similar approach during the hiring process can have numerous benefits for your business. Treating potential employees as guests is a concept that has been gaining traction in recent years. The idea behind this approach is to create a positive candidate experience that will help attract top talent and boost the employer brand. When companies treat potential employees as guests, they show that they value their time and effort and are committed to providing a positive experience, even if the candidate does not end up being hired.

One of the key benefits of treating potential employees as guests is that it can help companies stand out in a crowded job market. In today’s highly competitive hiring landscape, candidates have more options than ever before, and companies need to find ways to differentiate themselves. By providing a positive candidate experience, companies can create a lasting impression that will help them attract top talent and build a strong employer brand. Additionally, treating potential employees as guests can help companies improve their retention rates by creating a positive first impression that sets the tone for the entire employee experience. By treating potential employees as guests, you convey a positive and professional image of your company. This approach not only enhances your employer brand but also helps attract top talent who appreciate being valued and respected throughout the recruitment journey.

The Importance of Treating Potential Employees as Guests

When it comes to hiring new employees, it’s easy to forget that the recruitment process is a two-way street. Just as a company is looking for the best candidate to fill a role, potential employees are also assessing the company to see if it’s the right fit for them. This is why it’s important to treat potential employees as guests, making them feel welcome and valued from the very beginning.

Treating potential employees as guests can have a number of benefits for a company. Firstly, it can help to create a positive first impression, which is crucial in the recruitment process. A company that makes an effort to welcome potential employees and make them feel comfortable is more likely to be viewed favourably, which can help to attract top talent.

In addition, treating potential employees as guests can help to create a positive company culture. By showing that the company values and respects all individuals, regardless of whether they are employees, potential employees are more likely to view the company as a desirable place to work. This can help to increase the number of high-quality candidates who apply for roles within the company.

There are a number of ways that companies can treat potential employees as guests. For example, they could offer a tour of the office or workplace, provide refreshments during the interview process, or assign a member of staff to act as a point of contact for any questions or concerns. By making an effort to go above and beyond, companies can help to create a positive and welcoming environment for potential employees.

Overall, treating potential employees as guests is an important part of the recruitment process. By making an effort to create a positive first impression and show that the company values all individuals, companies can attract top talent and create a positive company culture.

Key considerations

First Impressions Matter

When it comes to treating potential employees like guests, creating a welcoming environment is crucial. The first impression sets the tone for the entire experience, and it’s important to get it right. The reception area should be tidy and well-lit, and any staff members who interact with potential employees should be friendly and approachable.

One effective way to create a welcoming environment is to offer refreshments. Providing tea, coffee or water can help potential employees feel more at ease and comfortable. Additionally, providing a comfortable seating area can significantly impact the overall experience.

Clear Communication

From the moment candidates express interest in your job opening, respond promptly to their inquiries and make them feel acknowledged and valued right from the start. Clear communication and a positive first impression set the stage for a great candidate experience. Be transparent and open in all your communications with candidates. Clearly outline the job requirements, expectations, and the recruitment process. Keep candidates informed at each stage, providing timely updates on their application status. Effective communication fosters trust and demonstrates your commitment to a fair and inclusive hiring process.

Professional Environment

Just as you strive to create a welcoming atmosphere for your guests, ensure that the interview setting reflects a professional and comfortable environment. Prepare interviewers to be respectful, attentive, and mindful of the candidate’s experience. Show genuine interest in their background, skills, and aspirations, making them feel valued and heard.

Maintaining Open Communication

Another key aspect of treating potential employees like guests is maintaining open communication. This means keeping potential employees informed about the hiring process and being transparent about what they can expect.

One effective way to maintain open communication is to provide regular updates. This can be done via email or phone and can help potential employees feel more engaged and informed throughout the process. Additionally, providing a clear timeline for the hiring process can help set expectations and reduce anxiety.

Timely Feedback

Provide timely feedback to candidates after each stage of the hiring process. Whether it’s a rejection or an invitation for further assessment, prompt and constructive feedback shows your respect for their time and effort. This approach also allows candidates to improve their skills and performance based on your valuable insights.

Positive Closure

Regardless of the final hiring decision, conclude the candidate’s journey with a positive experience. Express appreciation for their interest and efforts, and if appropriate, provide guidance for their future career development. Leaving a positive impression, even for candidates who weren’t selected, can lead to future recommendations and maintain a positive reputation for your business.

By treating potential employees as guests throughout the recruitment process, you foster a culture of respect, professionalism, and inclusivity. This approach not only attracts talented individuals but also helps build a positive employer brand and enhances your overall company reputation.

Remember, creating a positive candidate experience is not only the right thing to do but also beneficial for your business in the long run. By treating potential employees as valued guests, you set the stage for successful hires who will contribute to the growth and success of your organization.

 

The Pubs Advisory Service can help your pub business to become more profitable. If you need help, then please get in contact with us today by clicking HERE.

Food service inflation surges to over 20%: Experts predict further price hikes

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The foodservice industry is grappling with another surge in inflation, as prices for essential ingredients and supplies soar beyond the 20% mark. This recent spike in food service inflation poses significant challenges for businesses, putting pressure on their margins and ultimately impacting consumers. According to the new edition of the CGA Prestige Foodservice Price Index, year-on-year inflation in food service prices has risen unexpectedly to 21.4% in April 2023. This marks a significant increase from the previous month when inflation dipped below 20% for the first time since mid-2022. The rebound in April underlines the severe cost pressures facing businesses, particularly in the foodservice industry.

Price increases had begun to slow in the first quarter of 2023, but this trend has now been reversed, with inflation surging past the 20% mark. The CGA Prestige Foodservice Price Index has continued its strong upward trend, with a tenth consecutive month of double-digit inflation. This is the first time in the history of the Index that inflation has exceeded 20%.

The rise in foodservice prices is likely to have a significant impact on businesses in the industry, as well as consumers. It is expected that businesses will need to pass on some of the increased costs to consumers, which could lead to higher prices for food and drink items in restaurants, cafes, and other food service establishments. The reasons behind the increase in inflation are complex, but it is likely that a combination of factors, including rising commodity prices, supply chain disruptions, and labour shortages, are contributing to the trend.

Overview of Foodservice Inflation

Inflation is a term that describes the rate at which prices for goods and services increase over time. In the foodservice industry, inflation can have a significant impact on the cost of ingredients, labour, and other expenses associated with running a restaurant or catering business. In April 2023, year-on-year inflation in foodservice prices rose unexpectedly to 21.4%, according to the CGA Prestige Foodservice Price Index.

Definition of Foodservice Inflation

Foodservice inflation refers to the increase in prices of goods and services related to the foodservice industry. This includes the cost of ingredients, labour, equipment, utilities, and other expenses associated with running a restaurant or catering business. Inflation can be caused by a variety of factors, including changes in supply and demand, fluctuations in the economy, and shifts in government policies.

Factors Contributing to Foodservice Inflation

There are several factors that contribute to foodservice inflation such as rising commodity prices, supply chain disruptions, and increased transportation costs have contributed to a sharp inflationary trend. The industry, including restaurants, cafes, and catering services, now faces the daunting task of managing these cost increases while maintaining quality and value for their customers.

One of the primary drivers is the cost of ingredients. The price of food commodities can be affected by a range of factors, including weather patterns, natural disasters, and changes in global supply and demand. In addition, the cost of labour can also impact foodservice inflation. As wages increase, businesses may need to raise prices to cover the additional costs.

Other factors that can contribute to food service inflation include changes in energy prices, transportation costs, and government regulations. For example, increases in fuel prices can drive up the cost of transporting goods, while changes in regulations related to food safety or labour practices can also impact the cost of doing business in the food service industry.

Now what?

Amid these challenges, businesses are exploring various strategies to mitigate the impact of foodservice inflation. These include negotiating with suppliers for better pricing, optimizing operational efficiencies, and exploring innovative menu offerings that strike a balance between cost and quality.

Industry associations and trade bodies are also actively engaging with policymakers to raise awareness of the challenges faced by the sector. They are advocating for support measures such as tax relief, government subsidies, and initiatives to bolster the resilience of the foodservice industry.

As the industry grapples with this renewed surge in foodservice inflation, collaboration and innovation become crucial to finding sustainable solutions. Businesses must adapt and navigate these challenging times by exploring new sourcing options, implementing efficient cost management practices, and focusing on delivering value to their customers.

Furthermore, consumers play an essential role in supporting the industry during these challenging times. Understanding the cost pressures faced by businesses, they can continue to patronize their favourite establishments and be mindful of the value provided by the foodservice sector.

While the current surge in foodservice inflation poses significant hurdles, the industry has shown resilience in the face of adversity. By implementing proactive measures, embracing innovation, and fostering strong partnerships across the supply chain, the foodservice sector can navigate these turbulent times and emerge stronger in the long run.

In conclusion, foodservice inflation has jumped back above 20%, posing significant challenges for businesses in the industry. Rising costs of ingredients and supplies are squeezing profit margins and impacting consumers. Businesses are adapting through various strategies, and industry associations are advocating for support measures. Collaboration, innovation, and consumer support will be instrumental in overcoming these inflationary pressures and ensuring the long-term viability of the foodservice sector.

The Pubs Advisory Service can help your pub business to become more profitable. If you need help, then please get in contact with us today by clicking HERE.

Deposit Return Scheme Postponed Until October 2025

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The implementation of the highly debated deposit return scheme in the UK has faced a setback, with the government announcing a delay until October 2025. The scheme, which aims to reduce plastic waste and promote recycling, has been met with mixed reactions and concerns from various stakeholders. The Scottish government has delayed the introduction of its deposit return scheme, citing the UK government’s refusal to agree to a full exclusion from the Internal Market Act. The scheme, which was due to be launched in March 2022, aims to reduce plastic waste and increase recycling rates by requiring customers to pay a small deposit on drinks containers that can be refunded when they are returned for recycling.

The delay has been met with disappointment from environmental campaigners, who argue that the scheme is urgently needed to address the growing problem of plastic pollution. The Scottish government has defended its decision, claiming that it needs more time to work out the details of the scheme and ensure that it is implemented effectively. Critics have expressed concerns over potential operational challenges and the impact on businesses, particularly small retailers and hospitality establishments. Issues such as logistics, storage space, and additional costs associated with the scheme have raised legitimate concerns, prompting calls for further analysis and adjustments to ensure a smooth and equitable implementation.

Reasons for Delay

The deposit return scheme (DRS) in Scotland has been delayed until October 2025 at the earliest. The delay has been met with disappointment from environmental groups and industry leaders. The following are the reasons for the delay:

Environmental Concerns

One of the main reasons for the delay in the deposit return scheme is the environmental concerns surrounding the scheme. The Scottish government has stated that it wants to ensure that the DRS is as effective as possible in reducing waste and increasing recycling rates. The government is concerned that the scheme may not be as effective as it could be if it is rushed into implementation. The delay will allow the government to take the time to ensure that the scheme is as effective as possible in reducing waste and increasing recycling rates.

Industry Challenges

Another reason for the delay is the challenges faced by the industry. The Scottish government has stated that it wants to ensure that the DRS is workable and practical for businesses. The government is concerned that the scheme may place an undue burden on businesses if it is rushed into implementation. The delay will allow the government to work with businesses to ensure that the scheme is workable and practical for them.

The delay has been met with mixed reactions. Environmental groups have expressed disappointment at the delay, stating that it will lead to further damage to the environment. Industry leaders have welcomed the delay, stating that it will allow them to work with the government to ensure that the scheme is workable and practical for businesses.

Impact on Consumers

The delay of the deposit return scheme in Scotland until October 2025 will have a significant impact on consumers. The scheme was designed to encourage recycling and reduce waste by requiring a deposit to be paid on single-use drinks containers, which would be refunded when the container is returned for recycling.

Consumers who were looking forward to participating in the scheme will now have to wait several more years before they can benefit from it. This delay may discourage some consumers from recycling, as they may feel that their efforts are not making a difference.

Furthermore, the delay may also have financial implications for consumers. Many people were looking forward to receiving refunds for their recycled containers, which could have helped to offset the cost of purchasing drinks. The delay means that consumers will have to wait longer before they can receive these refunds.

The delay may also impact the environment. Without the deposit return scheme, more single-use drinks containers are likely to end up in landfills or littering the environment. This could have negative consequences for wildlife and the ecosystem.

In conclusion, the delay of the deposit return scheme in Scotland until October 2025 will have a significant impact on consumers. It may discourage some from recycling, have financial implications for others, and harm the environment. It remains to be seen whether the delay will be worth the wait for consumers and the environment.

The Pubs Advisory Service can help your pub business to become more profitable. If you need help, then please get in contact with us today by clicking HERE.

Cider Sales Soar as Warm Weather Boosts Pub Trade

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The recent surge in warm weather across the UK has provided a much-needed boost to the pub industry, with cider sales experiencing a notable increase. As temperatures rise, customers are flocking to pubs and embracing refreshing beverages, positively impacting trade according to recent reports. The combination of sunny days and relaxed social restrictions has created an ideal environment for people to enjoy outdoor settings and indulge in their favourite drinks. Cider, with its crisp and fruity flavours, has become a popular choice among patrons seeking a refreshing and thirst-quenching option.

The Drinks Recovery Tracker from CGA by NIQ revealed that drinks sales in Britain’s managed pubs and bars during the seven days to Saturday 27 May finished 2% ahead of the same week in 2022, thanks to surging cider sales and warm weather. This marks the fifth successive week of year-on-year growth for on-trade drinks transactions.

The latest figures reflect a solid May for operators and suppliers in the UK’s hospitality industry, despite the ongoing challenges posed by the pandemic. Beer and cider sales performed particularly well, with beer up 10% and cider up 15% last week. Soft drinks and wine sales were also ahead, while spirits sales lagged behind last year by 5%. The strong performance of cider sales and the wider drinks market is a welcome boost for the industry, which has faced numerous challenges in recent years.

Cider Sales and Warm Weather

Cider Sales on the Rise

The latest Drinks Recovery Tracker from CGA by NIQ revealed that cider sales in Britain’s managed pubs and bars during the seven days to Saturday 27 May finished 22% higher than the same week in 2022. The surge in cider sales can be attributed to the warmer weather, which always benefits the category. The increase in cider sales contributed to the fifth successive week of year-on-year growth for on-trade drinks transactions.

In addition to cider sales, beer and soft drinks also recorded solid growth, up 5% and 3%, respectively. However, wine and spirits were weaker, with wine up just 0.2% and spirits down 11%.

Warm Weather Boosts Pub Trade

The warm weather has been a significant factor in boosting on-trade drinks transactions in Britain’s managed pubs and bars. According to the Drinks Recovery Tracker, trading in the week to last Saturday, 27th May, finished 2% higher than the same week in 2022, down slightly from 5% in the previous week, but still a solid May for operators and suppliers.

Seasonality plays a key role in on-trade cider sales, with warmer weather and beer gardens activating the nation’s sweet tooth year after year. The government-backed Eat Out to Help Out scheme in tandem with one of the hottest summers on record boosted the cider category in 2020. In 2023, the warm weather has once again played a significant role in driving cider sales and boosting pub trade.

In conclusion, cider sales have been on the rise in Britain’s managed pubs and bars, with the warmer weather contributing to the surge in sales. The increase in cider sales, along with solid growth in beer and soft drinks, has led to the fifth successive week of year-on-year growth for on-trade drinks transactions.

Pub Trade Benefits

Increased Revenue

The warm weather and increased cider sales have had a positive impact on the pub trade, leading to increased revenue. According to the Drinks Recovery Tracker, cider sales have increased by 22% in May 2023, which is attributed to the warmer weather. This increase in sales has led to a boost in revenue for pub owners, helping to offset the losses incurred during the pandemic. The boost in cider sales not only benefits pubs but also supports local and regional cider producers. As consumer demand increases, pubs can collaborate with local cider makers, showcasing their products and promoting the vibrant cider industry in the UK.

Higher Footfall

The increase in cider sales and warm weather has also led to higher footfall in pubs. As more people head out to enjoy the sunshine, pubs are seeing an increase in customers. This increase in footfall is not limited to just those looking for a refreshing cider, but also to those looking for other drinks and food options.

Customer Satisfaction

The boost in revenue and higher footfall are also leading to increased customer satisfaction. With more customers coming through the doors, pub owners are able to provide better service and a more enjoyable experience for their customers. This increase in customer satisfaction is reflected in the positive reviews and feedback that pubs are receiving.

In conclusion, the recent surge in cider sales, coupled with warm weather, has breathed new life into the pub industry. Pubs that embrace this trend and offer a diverse range of refreshing cider options stand to benefit from increased footfall and customer satisfaction. As the summer unfolds, it’s an exciting time for both pub owners and cider enthusiasts alike.

The Pubs Advisory Service can help your pub business to become more profitable. If you need help, then please get in contact with us today by clicking HERE.

UK Pubs and Restaurants Call for Government Intervention as Energy Bills Skyrocket by 81%

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Pubs and restaurants across the UK are voicing their concerns and appealing to the government for urgent action as energy costs continue to surge. Recent reports reveal that these establishments have experienced an alarming 81% increase in their energy bills, putting significant strain on their operations and financial stability.

The hospitality industry, already grappling with various challenges due to the pandemic, now faces the additional burden of skyrocketing energy prices. Pub and restaurant owners argue that the steep rise in energy costs is unsustainable and threatens the viability of their businesses.

Representative bodies such as the British Beer and Pub Association (BBPA) and the Restaurants Association have united in their call for immediate government intervention. They highlight the need for supportive measures to alleviate the mounting financial pressure faced by pubs and restaurants, safeguarding the future of these vital establishments.

Pub and restaurant owners are urging the government to take the following actions:

  1. Financial Assistance: They are appealing for targeted financial support to help alleviate the impact of rising energy costs. Assistance in the form of grants or subsidies would provide much-needed relief to businesses struggling to cope with the sharp increase in bills.
  2. Regulatory Review: The industry is calling for a thorough review of energy regulations and pricing mechanisms to ensure fairness and transparency. They seek measures that protect businesses from disproportionate price hikes and provide a stable energy market.
  3. Energy Efficiency Initiatives: Promoting and incentivizing energy efficiency measures within the sector can help mitigate the impact of rising costs. Encouraging the adoption of renewable energy sources, supporting energy-saving initiatives, and providing guidance on best practices are essential steps to reducing energy expenses for pubs and restaurants.
  4. Long-term Stability: Establishing a framework for long-term energy stability is crucial for the industry’s sustainability. The government must work closely with energy providers to create a predictable and affordable energy market that allows businesses to plan and budget effectively.

The collective plea from pubs and restaurants emphasizes the urgent need for government support in addressing the energy cost crisis. The industry argues that failure to act swiftly could lead to a significant number of closures, resulting in job losses and severe economic repercussions for local communities.

In conclusion, UK pubs and restaurants are calling on the government to intervene and alleviate the burden of skyrocketing energy bills. Their plea for financial assistance, regulatory review, energy efficiency initiatives, and long-term stability aims to safeguard the viability of these establishments and protect jobs within the hospitality sector. Swift and decisive action is essential to ensure the survival and revival of the vibrant pub and restaurant culture that is so cherished in the UK.

BBPA and BII Call on Government to Address Pub Vacancies Issue

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BBPA and BII urge UK government to address pub vacancies

The British Beer & Pub Association (BBPA) and the British Institute of Innkeeping (BII) have teamed up to urge the UK government to include chefs from overseas on the Shortage Occupation List. This move is aimed at filling job shortages in the pub industry, particularly in kitchen-based roles, where vacancies tend to be the highest. The BBPA and BII have submitted a joint proposal to the Migration Advisory Committee, which is seeking evidence to address the issue.

According to Emma McClarkin, Chief Executive of the British Beer and Pub Association, the UK pub industry is facing a severe staffing crisis, and the shortage of skilled chefs is a significant part of the problem. This shortage is limiting the industry’s ability to offer certain menu items, or in some cases, serve any food at all. The BBPA and BII believe that including chefs from overseas on the Shortage Occupation List will help alleviate the crisis and ensure that pubs can continue to offer a full range of food and drink options to customers.

The BBPA and BII’s joint submission to the Migration Advisory Committee is just one of several initiatives aimed at addressing the staffing crisis in the UK pub industry. Pub owners are also increasing salaries, offering accommodation, and developing new training opportunities to attract and retain staff. However, the inclusion of chefs from overseas on the Shortage Occupation List is seen as a crucial step in ensuring that pubs can continue to provide high-quality food and drink options to customers and remain a vital part of the UK’s hospitality industry.

BBPA and BII push GOV to fill pubs vacancies

The current state of the pub industry

The British pub industry has been facing a severe staff shortage crisis in recent years, with many pubs struggling to fill vacancies. This has been a significant challenge for the industry, which relies heavily on skilled and passionate staff to provide excellent service and create a welcoming atmosphere for customers.

The impact of staff shortages on the industry

The impact of staff shortages on the pub industry has been significant, with many pubs being forced to reduce their opening hours or shut down altogether. This has had a knock-on effect on the wider economy, with fewer jobs being created and fewer opportunities for local suppliers and businesses.

The BBPA and BII’s call to action

The British Beer and Pub Association (BBPA) and the British Institute of Innkeeping (BII) have been working together to address the staff shortage crisis in the pub industry. They have called on the government to take action to support the industry and help pubs fill their vacancies.

Government Response and Initiatives

The government has recognised the severity of the staff shortage crisis in the pub industry and has launched several initiatives to support the industry. These include the introduction of a new visa scheme for skilled workers and increased funding for training and apprenticeships. They propose several key actions:

  1. Incentives and Support: The organizations are urging the government to introduce targeted incentives and support schemes to attract individuals to the pub industry. This could include financial incentives for training and recruitment, as well as assistance with licensing processes and regulatory requirements.
  2. Skills Development: Enhancing skills development programs specific to the pub sector is vital to attract and retain talent. The BBPA and BII emphasize the importance of investing in training initiatives that equip individuals with the necessary skills and knowledge to excel in pub roles.
  3. Streamlining Processes: Simplifying administrative processes and reducing bureaucratic hurdles can encourage more individuals to consider pub careers. This could involve reviewing licensing procedures, reducing red tape, and providing clearer guidance to facilitate the smooth operation of pub businesses.
  4. Promoting the Industry: Collaborative efforts between industry associations, government bodies, and local communities are crucial in raising awareness and promoting the benefits of working in the pub sector. Highlighting the rewarding nature of pub careers and showcasing success stories can help attract more talent to fill pub vacancies.

Challenges to filling pub vacancies

Despite the government’s initiatives, there are still several challenges to filling pub vacancies. These include a lack of interest in the industry among young people, a lack of affordable housing for staff, and competition from other industries.

Potential solutions and recommendations

To address the challenges facing the pub industry, the BBPA and BII have recommended several solutions. These include increasing the visibility of career opportunities in the industry, providing more affordable housing for staff, and working with local authorities to reduce business rates for pubs.

In conclusion, the BBPA and BII are urging the government to prioritize the filling of pub vacancies. Taking proactive steps to incentivize, support, and promote the sector will not only benefit pub businesses but also contribute to economic recovery and job creation. By addressing the challenges and implementing targeted solutions, the government can play a vital role in ensuring the pub industry’s resilience and long-term success.

The Pubs Advisory Service can help your pub business to become more profitable. If you need help, then please get in contact with us today by clicking HERE.

Draught Lager Prices Experience Significant 11% Increase

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Draught lager prices have seen a significant 11% increase since March 2023, according to recent data from the Office for National Statistics (ONS). This has led to concerns among pub-goers and publicans alike, as the cost of a pint of beer continues to rise. The price hike affects both lager and cask ale, with some brands seeing increases of up to 12% per keg.

The rise in prices is due to a number of factors, including increased production costs and a shortage of some key ingredients. The ongoing COVID-19 pandemic has also contributed to the rise, with many pubs and breweries struggling to stay afloat during lockdowns and restrictions. As a result, some have been forced to raise prices to cover their costs and keep their businesses running.

Despite the increase in prices, many pub-goers are still willing to pay for a pint of their favourite beer. However, others are turning to cheaper alternatives or opting to drink at home instead. Publicans are also feeling the pressure, with some struggling to make ends meet as a result of the price hike.

Reasons for the Increase

Brewing Costs

One of the main reasons for the increase in draught lager prices is the rising cost of brewing. The cost of ingredients such as hops and barley has increased due to a combination of factors including poor weather conditions and supply chain disruptions. In addition, energy costs have also risen, as breweries require a significant amount of energy to produce beer.

Transportation Costs

Another factor contributing to the increase in draught lager prices is the rising cost of transportation. As the cost of fuel increases, so does the cost of transporting beer from the brewery to the pub. In addition, there have been disruptions to the supply chain due to Brexit, which has led to increased costs and delays in transportation.

To offset these rising costs, breweries have had to increase their prices, which has resulted in higher prices for consumers. While this increase in price may be difficult for some consumers to swallow, it is important to remember that the cost of production and transportation is a significant factor in the price of draught lager.

Impact on Consumers

The recent 11% increase in draught lager prices by the Carlsberg Marston’s Brewing Company (CMBC) is likely to have a significant impact on consumers. This section explores the potential effects of the price hike on beer drinkers.

Price Comparison with Other Beers

The price comparison between CMBC’s draught lagers and other beers will be one of the key factors that will determine the impact on consumers. While the price hike is significant, it is important to note that CMBC’s lagers are still competitively priced compared to other brands. For example, a pint of Carlsberg Export will now cost around £4.60, which is still cheaper than many craft beers on the market.

However, the price hike may be more noticeable for regular beer drinkers who are used to paying lower prices for their favourite lagers. They may start to compare prices with other brands and switch to cheaper alternatives if they feel that the price increase is too high.

Potential Changes in Consumption Habits

Another potential impact of the price hike is that consumers may change their consumption habits. They may start to drink less beer or switch to other alcoholic drinks that are cheaper. This could have a knock-on effect on the overall sales of draught lagers, which could be a concern for CMBC and other beer manufacturers.

On the other hand, some consumers may be willing to pay higher prices for CMBC’s lagers if they perceive them to be of higher quality or if they are loyal to the brand. This could help to offset any potential losses in sales.

In summary, the 11% increase in draught lager prices reflects the ongoing challenges faced by the hospitality industry. Rising production costs, inflationary pressures, supply chain disruptions, and taxation policies have all contributed to this upward trend. As businesses and consumers navigate these price changes, it remains crucial for pubs and bars to strike a balance between maintaining profitability and providing value to their customers. Additionally, continued monitoring of market trends and adjusting strategies accordingly will be essential to ensure long-term sustainability in the face of evolving market dynamics.

The Pubs Advisory Service can help your pub business to become more profitable. If you need help, then please get in contact with us today by clicking HERE.