According to industry leaders, menu prices will increase by an additional 6% over the next year, making a trip to the pub even more pricey.
According to a new report, hospitality businesses anticipate further price increases as costs rise; prices have already increased by nine percent in the past year. In June, hotel industry experts CGA claimed that the most expensive pint they had identified cost £8 in London. The new calculations indicate that a pint of beer will cost £8.48 a year from now.
In 2008, the average price of a pint in the United Kingdom was £2.30. By 2022, the price of a pint will have climbed by 72%, to an average of £3.95.
According to finder.com, the average price of a pint in London is £5.50, and prices continue to rise.
In the next 12 months, restaurants, pubs, nightclubs, and hotels will all increase their rates due to higher industry-wide expenses.
Also, a normal supper at Nando’s consisting of butterfly chicken, sides, and beverages for a family of four would cost between £68 and £72.08. Venues are confronted with greater energy costs, a shortage of components, and supply challenges due to the rising cost of supplies.
In addition, there are persistent difficulties in attracting and retaining employees, resulting in increased costs to maintain the firm.
Mounting prices and supply concerns will also endure, according to a new analysis by CGA in collaboration with the Business Confidence Survey by hospitality experts Fourth.
The report revealed that 81 percent of hospitality businesses have been affected by shortages of critical food and drink products, 71 percent have reported “substantial increases” in energy prices, and attracting and maintaining personnel continues to be a difficulty across the board.
According to a study included in the report, business leaders increased menu prices by an average of nine percent over the last year and plan to increase prices by six percent in the coming year.
In an effort to decrease expenses, hospitality organizations have substantially reduced energy consumption or shifted to renewable sources, and have even increased the amount of plant-based cuisine on their menus.
Fourth’s managing director Sebastien Sepierre stated, “The hospitality industry has endured a difficult two and a half years, and the continued supply chain disruption is the most recent obstacle that firms have had to face.”
CGA’s Karl Chessell remarked, ‘The combined punch of cost and availability difficulties is exerting enormous pressure on the margins of operators. Combined with the escalating consumer cost-of-living problem, this will result in extremely difficult market circumstances for the duration of 2022.
The long-term outlook for the hospitality industry is positive, but for the time being, executives must strike a balance between absorbing rising costs and passing them on to guests. In addition to highlighting the need for immediate and ongoing government support for the sector, the magnitude of the supply difficulties underscores the importance of such support.