By Findlay Leask, Managing Director of Caber Coffee
FOR those working in hospitality, the pressure must feel incessant. Over the last three years the industry has closed, invested in measures to protect customers, opened, closed again, reopened with restrictions, experienced a slow recovery in footfall, faced staffing shortages and, most recently, spiralling costs of energy and food.
Subscribe to our daily newsletter
Why? Free to subscribe, no paywall, daily business news digest.
Worryingly, it might not be over yet!
In April, already vastly inflated costs will be exacerbated by a rates re-evaluation, shallower financial support on energy, and a minimum wage increase – and all the while, we consumers face the prospect of dwindling disposable income. To top it off, let’s not forget about the ill-thought-through Deposit Return Scheme that, despite consultation, is due to go live in August. And, after investing billions in furlough and targeted financial support, how will the Scottish or Westminster governments plan on supporting the sector?
Unfortunately, we all became used to the last-minute delivery of support during the pandemic but this time it feels that the eleventh hour has already come and gone for some hospitality businesses. Only recently, we heard the sad news that a local café and restaurant would be closing. Soon after, we heard that three of our own customers who would follow suit and, as I was quoted as saying at the time, it feels like the start of the tsunami.
Hospitality is a vast sector, employing around 2.5million across the UK. Here in the North east, it’s even more significant due to our reputation as a global tourism destination. Support the sector properly and businesses which are strongly associated, including ours, will feel the benefit of the “trickle down” that was lauded by Westminster. Meanwhile, they and Holyrood seem determined to punish our energy sector lifeblood as if, in some way, the globe can magically turn off our demands for petrochemicals!
In speaking to those at the sharp end, they’re well aware that passing on all their cost increases has simply not been an option. Therefore, every business is running on vastly reduced margins yet they still have bills to pay and they must still be staffed.
To our governments, the message is that the investment made in supporting us through the pandemic shouldn’t be so futile as to willingly allow these normally viable businesses to fail and close at the rate we have seen recently. Throw them the lifeline, maintain the support – but don’t wait.
To our council leaders, the plea is that our city needs to be vibrant and accessible, not just for those who can hop on a bus and be in Union Street in minutes. I’ve banged the “buy local” drum before, many times, but it’s worth repeating. When you decide to meet over a coffee, host a client for lunch, treat a relative or friend make sure you pick a local venue.
