Unprecedented inflation in energy spending and other prices led to a drop of 1611 licensed homes in the fourth quarter, according to Hospitality Market Monitor through AlixPartners and CGA through Nielsen IQ.
This represents a contraction of 1. 6% in the market in just 3 months. In the 2022 total, the hotel industry recorded a drop of 4,809 establishments, or 4. 5% of the total at the end of 2021, with more than three-quarters of closures happening in the current part of the year.
The managing director of British Beer
The report says hospitality suffered a greater number of closures in 2022 than in 2021, when Covid restrictions particularly reduced trade. The sector now has 13,037 fewer sites than at the start of the pandemic in March 2020, a contraction of more than 10% in less than 3 years.
Many of the 2022 shutdowns were the result of skyrocketing prices for energy, food and other key areas, which weighed on profit margins and hindered expansion in real terms. 2023.
CGA’s director for hotel and food operators, EMEA, Karl Chessell, said: “While Covid has weighed heavily on the hospitality industry, those figures indicate that the energy crisis is having an even more damaging impact.
“Given all the pressures, a drop of over 1600 sites in 3 months is shocking and each closure represents an unfortunate loss of jobs and a sadness for communities and operators.
“While consumers are still interested in stopping at pubs, bars and restaurants, thousands of vulnerable businesses are threatened after 3 years of unrest due to COVID and inflation. Urgent and targeted government help is needed to help them with what promises to be another very complicated problem. “year.
Graeme Smith, managing director at AlixPartners, said the equivalent of thirteen sites have been lost every day since the pandemic began in March 2020.
“While some segments have remained resilient,” Smith said, “others have gone through a tougher patch, with the casual dining sector, nightclubs and independent businesses suffering from closing rates as prices and trading action have taken their toll.
“What is transparent is that, with more government support, the energy crisis has the potential to wreak more havoc on hospitality than covid and if the current rate of closures continues, we will see the number of authorised premises in Britain fall below 100,000 sometime this year. “
BBPA’s McClarkin added, “After several shutdowns, we thought we’d be living through the worst of times, but the exorbitant energy costs went further by pushing publicans to the limit. This crisis is forcing other people to abandon their businesses, and in some cases, their homes as well if they live above their pub.
“If the government does not reconsider expanding power for businesses beyond April, it will have to crack down on suppliers who benefit from the market and introduce long-term for our sector by reducing the unfair tax burden on pubs and brewers.
“If not interfered with now, this trend of closures will continue with hundreds, if not thousands, of more pubs lost in communities across the country. “