Seven in ten hospitality businesses affected by rising energy prices, ONS data shows

15 July 2022 by
Seven in ten hospitality businesses affected by rising energy prices, ONS data shows

Seven in ten businesses in the hospitality industry have seen their operations or suppliers impacted by rising energy prices, according to recent ONS data.

It comes after some hospitality operators told The Caterer that increased monthly bills are forcing them to consider permanent closure.

The ONS survey also showed that 20% of businesses in the accommodation and food services activities sector expected their turnover to fall in August 2022, despite it being holiday season.

The sector had the largest proportion of operators reporting an increase in the price of goods they buy (75%), compared to 50% in other industries.

Some 31% of hospitality businesses have also increased the prices at which they sell items to consumers, the largest proportion of any industry.

Just over a quarter (26%) of hospitality businesses are also experiencing lower stock levels of raw materials.

Almost half (44%) of all businesses surveyed by the ONS revealed that they had to absorb costs from the price rises.

It is understood that the government is aiming to support businesses to improve their energy efficiency by at least 20% by 2030, and is working with the dedicated hospitality sector council to find growth opportunities.

Image: ndstudio1982 / Shutterstock

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