Hospitality most likely to cut trading to combat energy costs

Hospitality businesses are more likely to cut trading hours in an attempt to cut energy costs, according to the ONS Business Insights and Conditions Survey (BICS).

More than one in five hospitality businesses that were still trading in October 2022 reported that they had reduced trading hours while keeping the same number of business days to save on energy. The number of businesses who planned to do this in November was 21%.Only 3% of all businesses had to do this.

Furthermore, 7% of hospitality businesses had to cut trading by one day and 6% had to cut trading by two days. In contrast only 2% of all businesses had to cut trading by one day or two days.

Last month, it found over 50% of hospitality businesses stated that they had to take some kind of action to counter rising energy costs. The most common action was turning electrical equipment off or putting it on standby when not in use.

Nearly three in five hospitality businesses said that their main concern for November was energy costs. That figure has risen from just over 20% in October.

Reacting to the figures, The BBPA said on Twitter: “New ONS stats lay bare the vulnerability of pubs and brewers re energy costs and the tough decisions they [are] having to make to survive.

“We need clarity and a long-term guarantee on biz [business] energy support beyond initial six months in Jeremy Hunt’s Thurs[day] statement.”