Challenging times ahead for the catering sector?

Johnson Reed
2m read
Challenging times ahead for the catering sector?

Research suggest 70% of pubs won’t survive the winter months.

Soaring energy bill prices are impacting businesses and households all over the UK and we are yet to even reach the cold winter months where bills are meant to rise even further. Analysis shows that energy bills are already at their highest levels in at least half a century and are set to nearly triple by early next year, reaching well over £5,000 for the average household ( This is creating problems, specifically from an economic standpoint, as households are now spending less in an attempt to save money with the rising cost-of-living. Ultimately, this is sounding the alarm bells for industries including the catering and hospitality sectors who are already dealing with other problems themselves.

“We have entered one of the most challenging times for the brewing sector,” said the Society of Independent Brewers, as pubs all across the UK are not only suffering from the energy price rises themselves but are also dealing with equipment shortages of things such as kegs, cans and CO2 gas, along with the prices of hop going up due to a poor harvest. Small brewers are starting to see their bills double and even triple, which is putting their future in “grave uncertainty”. Unfortunately, it gets worse.  Suppliers are also starting to raise the drawbridge when it comes to offering new contracts out of fear that pubs will not be able to afford their future bills.

Brewers and pub operators are starting to come together to plead with the government to step in and prevent further damage to their businesses. Grants for renewable technology, caps on energy prices for smaller businesses and further reduction in VAT and business rates have all been pitched as measures to prevent a “doomsday scenario”.

Whilst they wait for the government to react and impose business-saving measures onto the industry, there are options available in order to reduce the financial impact of the economic implications affecting pubs. By leasing equipment, it can be kind to your cash flow as it reduces the need for one large outlay. Cash is king, certainly in times like these, so preserving it as much as you can could literally be the difference between making and breaking your businesses’ future.

The next 12 months are unpredictable. The state of the UK economy is so volatile that not much is certain and businesses will need to be more pragmatic than ever. One thing is for sure, owners need to preserve and secure their future. You can speak to us today and find out more about what options are available to you today.