'The economic turbulence in the hospitality sector is clear. Severe inflationary pressures on core costs mean we are looking at a crisis situation across much of the sector. Survival over the next six to 12 months will be the goal for many, with ever-tightening margins a reality for most,” says economist Anthony Foley. Photograph: iStockSpiralling energy and food costs have pushed many hospitality businesses close to the brink of collapse, a new report has warned.
It also warned that the situation is likely to deteriorate further in the remainder of 2022 and into 2023, with additional cost rises expected in interest rates, water charges and employment taxes. The Estimation of Costs of Doing Business in the Hospitality Sector: 2022 and 2023 report by economist Anthony Foley also highlighted the toll increasing food costs is taking on the sector.
“The economic turbulence in the hospitality sector is clear. Severe inflationary pressures on core costs mean we are looking at a crisis situation across much of the sector. Survival over the next six to 12 months will be the goal for many in the sector, with ever-tightening margins a reality for most,” Prof Foley said.