Restaurants

Restaurant owners facing mental health crisis, research finds

A study from 200 UK hospitality decision-makers revealed that 37% of restaurant owners believe their mental health has been affected by the staff shortage crisis within the sector

Over a third of restaurant owners across the country reported that their mental health was worse at the end of 2021 than it was during the peak of the pandemic in 2020, new research from Flipdish has found.

A study from 200 UK hospitality decision-makers revealed that 37% of restaurant owners believe their mental health has been affected by the staff shortage crisis within the sector, with nearly a third (29%) saying it is the worst their mental wellbeing has ever been. 

Despite pent-up demand following the removal of Covid restrictions, Flipdish warned the hospitality VAT tax hike of 20% came into effect earlier this month on April 1st, and was yet another blow. 

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With restaurant owners already facing staff shortages,meaning they have to operate under reduced hours and output and compromise revenue, the VAT rise marks the beginning of “another tough road to financial recovery” for many hospitality businesses. 

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Some 45% of restaurant owners are having to ask staff to work longer hours while 47% are having to work longer hours themselves to tackle the shortfall. A further 39% of restaurant owners surveyed said they believe there should be more support from the government to attract talent back to the hospitality sector.

When asked about the impact the state of the labour market has had on their mental health, restaurant owners largely said that there wasn’t enough support in the industry at all and the government should do more to support mental health (32%). 

Fionn Hart, UK country manager at Flipdish, said: “The talent crisis, inflation, VAT rises, inconsistent restrictions and low cash reserves have given restaurant owners sleepless nights. As restrictions were completely lifted earlier in the year, office parties and social gatherings are on the rise causing a spike in the number of customers coming through the door.

“Restaurant, pub, and bar operators now have a difficult balancing act to perform; fulfilling these bookings and offering promotions to get new customers through the door, while simultaneously managing the reduced staff numbers on the ground to serve them.”

He added: “It’s time the government opens its eyes to the pressures on the hospitality workforce, who are battling to protect their mental wellbeing whilst also keeping their businesses afloat. It’s become clear that financial aid for the sector simply isn’t enough.”

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