The UK is currently in the midst of a crippling cost of living crisis. With soaring energy bills, a rise in inflation, as well as supply problems across the country, the hospitality industry is feeling the strain.
This is the second crisis the sector has faced in recent years, following the Covid-19 pandemic which also hit businesses hard. Inflation in the UK is at an all time high, rising at the fastest rate for 40 years, and it is now at more than 9%.
Prices have soared for both businesses and consumers across the UK, resulting in some being forced to reduce spending elsewhere. Ewan Mcdonnell, a Leeds resident, shared how the crisis has affected his spending, “I’m not going out as much anymore, it’s too expensive. £15 for a drink on Call Lane is impossible to keep up with, especially when you’re only earning £10 an hour”.
Reduced customer spending across the city has resulted in a decline in intake for some venues in Leeds. Ellie Saddler, Senior Bar Assistant at a bar in Leeds city centre shared her concerns, “Not only is it affecting people’s disposable income, but it’s also affecting the businesses themselves because fewer people are coming in. We’re having to cut down on hours. Going out for a meal is a luxury, not a necessity, so people are spending their money elsewhere”.
Despite the squeeze currently felt by businesses in the city, some hospitality leaders remain confident that the impact won’t be felt at their venues. Will Carr, the bar supervisor at Salon Prive in Leeds, said he felt confident that the bar wouldn’t be affected by the crisis, “Dakota is one of those lucky businesses. We cater to a slightly more affluent market, so the people that are being hit the hardest by the cost of living crisis aren’t necessarily the ones who come here”.
It’s uncertain what the future will hold, but it’s undoubtedly a critical time for both consumers and businesses.
You must be logged in to post a comment.