The hospitality sector in the UK is experiencing a surge in prices, which is said to be linked to the country’s increasing inflation rate. Recent data from the Office for National Statistics (ONS) has shown that the Consumer Prices Index (CPI) rose to 2.1% in February 2023, compared to 1.8% in January 2023.
The ONS has identified a rise in food and drink prices, particularly in the hospitality sector, as a key factor contributing to the increase in inflation. Prices for eating and drinking out in pubs and restaurants have reportedly increased by 2.4% in comparison to the same period in the previous year. The cost of takeaway food and non-alcoholic drinks has also risen significantly.
This inflation rate hike may be concerning for UK consumers, as it means that the cost of goods and services is rising faster than wages. This could lead to a reduction in spending power and put pressure on household budgets.
Other factors, such as an increase in fuel prices and household utilities, have also been identified as contributors to the rise in inflation. However, the increase in food and drink prices within the hospitality industry is particularly noteworthy, as it highlights the challenges that businesses in this sector are currently facing.
The hospitality industry has been hard hit by the COVID-19 pandemic, and many businesses are struggling to balance increasing costs with the need to remain competitive. This rise in prices may reflect the difficulties that the industry is facing, as businesses try to recoup losses incurred during the pandemic while investing in new safety measures and staff training.
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