According to a new report from wholesale Creed Foodservice, around 86% of UK hospitality operators will likely have to close in the next three years if business costs don’t reduce. The report investigated the impact of the pandemic, rising inflation and increasing food costs on hospitality operations and how the sector can increase profits on every plate they serve.
Inflation and rising food costs are affecting the entire supply chain, from suppliers, logistics companies, transportation, wholesalers, and consumer-facing. Over the last year, there has been a 27% increase in eggs and baking potatoes by £8 a case. Combining this with consumers struggling through the cost-of-living crisis — bookings have significantly reduced.
Up to 85% of operators told Creed Foodservice that they will need to increase their menu prices to stay financially viable. At the same time, 83% of them are worried that by increasing prices they will alienate customers. This is backed by 47% of establishments that have seen a booking reduction.
