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28th June 2022

Only 1 in 3 hospitality businesses is currently profitable

New sector survey data reveals the crippling damage that rising energy, goods and labour costs is wreaking on hospitality venues. 

Profitability of hospitality businesses across the UK is plummeting with only 37% currently turning a profit, with the biggest factors being the rising costs of energy (74%), goods (55%) and labour (54%).

The survey, conducted by the British Beer and Pub Association, British Institute of Innkeeping and UKHospitality, comes almost one year after the Government released its Hospitality Recovery Strategy, which looked to increase the resilience of the sector by improving profitability and putting pubs, bars, and restaurants at the heart of plans to revitalise local economies after the pandemic.

However, the picture for hospitality businesses remains bleak, with almost half (45%) of businesses forced to reduced opening hours to avoid closing permanently and one in six reporting they have no cash reserves.

Now hospitality leaders are calling on the Government to recognise the contribution hospitality businesses can make to the economy whilst noting that less than one-third (28%) are currently considering investing in their businesses because of the challenging economic climate.

The group highlights three key priorities to get the sector back on track: tackling the current inflationary headwinds facing the sector; reforms that would unleash growth potential and a new tax and investment regime that facilitates a resilient and productive hospitality sector.

In a joint statement the British Beer and Pub Association, British Institute of Innkeeping and UKHospitality said:

“These figures are extremely worrying and demonstrate the critical situation hospitality businesses across the country are currently in. Given the chance, our industry has huge growth potential and the ability to play a critical role in the levelling up of communities in every single part of the UK, but instead we are still struggling to get back on our feet properly after a turbulent two years. 

“In the past few weeks inflation has hit record levels and costs on key ingredients and utilities has rocketed, whilst consumer confidence has plummeted resulting in fewer customers in our venues. We are weathering a perfect storm, but we can’t hold on forever, we need relief as soon as possible before the cost of doing business forces venues to close for good.”


Notes to editors: 

About the British Beer & Pub Association
The BBPA represents companies in the UK which between them brew over 90% of the beer sold in the UK and own 20,000 pubs. Our members include international companies, family brewers, managed locals, and the nation’s largest tenanted pub estates.

  • The UK’s beer and pub industry supports close to 940,000 jobs
  • The industry adds £26.2billion to the UK’s economy each year



UKHospitality is the trade body representing the UK’s hospitality sector, representing over 730 companies, operating around 85,000 venues in a sector that employed 3.2 million people prior to COVID. The body speaks on behalf of a wide range of leisure and ‘out-of-home’ businesses, from FTSE 100 enterprises to niche groups and independent single-site operators, as well as 6,000 affiliated operators and brings together businesses from all aspects of hospitality: coffee shops, hotels, serviced apartments, pubs, restaurants, leisure parks, nightclubs, contract caterers, entertainment, wedding venues, holiday homes, bowling alleys and visitor attractions. 

British Institute of Innkeeping

The BII is the leading independent licensee support organisation for individuals working in hospitality, with 10,000 individual members running premises across the UK – predominantly tenanted, leased, managed and freehold pubs. The organisation provides expert helplines, online business support, and guidance on key industry issues, and savings on a range of supply deals for its members, keeping pubs thriving in the heart of every community.

Press release from the BBPA, UK Hospitality and the BII

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