Food and DrinkRestaurants

One in five restaurants forced to shut amid supply issues

Of the restaurants polled, 54% have had to remove items from their menus due to lack of availability, whilst nearly half have had to increase prices

Almost one in five partner restaurants have been forced to close their doors during business hours over the past three months because of supply chain issues, according to a new survey by Deliveroo.

Of the restaurants polled, 54% have had to remove items from their menus due to lack of availability, whilst nearly half have had to increase prices.

For core ingredients, 89% of partner restaurants have seen wholesale costs increase and the majority (55%) agree that managing their supply chain has become “more difficult” over the past six months.

At the same time, nearly two thirds of partner restaurants report being understaffed with 30% of respondents saying they have fewer staff than six months ago.

As a result of staff shortages, 18% of partners have had to shut their business while two in five have been forced to change their operations such as rejecting bookings or limiting opening hours.

Carlo Mocci, chief business officer UK&I, Deliveroo, said: “While the economy has opened up and restaurants can welcome back dine-in guests, they’re facing the twin pressures of rising prices and staff shortages. We are pleased to be able to provide a lifeline through our delivery network.

Restaurants are a vibrant part of our local communities and critical to the economic recovery, so no-one wants to see them forced to turn away dine-in customers. Making the VAT cut permanent for hospitality will go a long way in easing the financial burden, protecting jobs and livelihoods.”

Kate Nicholls, CEO, UKHospitality, said: “With fragile consumer confidence further damaged by the impact of the new Omicron variant, at the start of what should have been a key trading period for the sector, on top of ever-rising costs, chronic staff shortages and ongoing supply chain issues, the government needs to act to support hospitality businesses.

“The best option for the government would be to retain the 12.5% VAT rate for hospitality and tourism, to allow businesses to invest in staff and skills, keep trading back to prosperity, help the wider national recovery and keep prices affordable for consumers.”

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