Industry experts have warned that many hospitality businesses will be forced to close until the spring as rising energy costs mean they can’t afford to stay open.
Outspoken business owners in the pub, restaurant and hotel trades have said they are considering “mothballing” during the winter because rising energy prices make their business model unviable in the colder months.
On top of rising energy costs, the sector has been hit with a 40% increase in hospitality food prices.
Similarly, Russell Imrie, managing director of the Best Western Plus Keavil House Hotel in Crossford, Scotland, told The Caterer that small hospitality businesses in rural areas were "seriously considering" whether it was worthwhile to open beyond the tourist season.
David Groocock, who has been running St Maur's bed and breakfast in Ventnor on the Isle of Wight since 1989, told ITV News it would be cheaper to close his business for the winter because of the price hike.
The support will be equivalent to the £2,500-a-year “energy price guarantee” announced for households on 8th September. The exact figures for the supported price will be confirmed on 30th September, The Guardian reports.
Do you think the government’s support package goes far enough? Is your business considering “mothballing” this winter? Be sure to let us know!
Outspoken business owners in the pub, restaurant and hotel trades have said they are considering “mothballing” during the winter because rising energy prices make their business model unviable in the colder months.
On top of rising energy costs, the sector has been hit with a 40% increase in hospitality food prices.
Hearing from small business owners
Chef and business owner Tom Kerridge has said his restaurant's electricity bills will rise from £5,000 a month to £35,000 a month in December when his current contract ends. He told the BBC that the numbers are “so ridiculous” that many are being forced to mothball.Similarly, Russell Imrie, managing director of the Best Western Plus Keavil House Hotel in Crossford, Scotland, told The Caterer that small hospitality businesses in rural areas were "seriously considering" whether it was worthwhile to open beyond the tourist season.
David Groocock, who has been running St Maur's bed and breakfast in Ventnor on the Isle of Wight since 1989, told ITV News it would be cheaper to close his business for the winter because of the price hike.
The role of government support
The government recently unveiled a six-month support package for businesses, starting on 1st October. For all non-domestic energy users in Great Britain, the price has been set at £211 per megawatt-hour (MWh) for electricity and £75 per MWh for gas.The support will be equivalent to the £2,500-a-year “energy price guarantee” announced for households on 8th September. The exact figures for the supported price will be confirmed on 30th September, The Guardian reports.
Do you think the government’s support package goes far enough? Is your business considering “mothballing” this winter? Be sure to let us know!
