Industry Update Q3 2025
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Pubs Urge Government for Tax Relief as Pressure Builds
In April 2025, the British Institute of Innkeeping (BII), representing over 13,000 independent pub operators, issued a call to the UK government for meaningful financial support in tax relief. The plea comes as pubs grapple with the cumulative impact of recent tax changes, including increased employer National Insurance Contributions (NICs), a higher National Minimum Wage […]
Energy Update for Hospitality (Q2 2025)
Recent data from the ONS indicates continued volatility in prices on energy updates, impacting operational costs for hospitality businesses: Gas Prices: The System Average Price (SAP) of gas increased by 3% to 4.173 pence per kilowatt hour (p/kWh) in the week to 19 January 2025, compared to the previous week. This marks a 70% increase […]
Hospitality Growth as Consumer Spending Shifts
In March 2025, the UK’s hospitality and leisure sector experienced a 2.8% year-on-year increase in consumer spending, maintaining the momentum from February’s 2.9% growth. This steady performance comes despite broader economic challenges and shifting consumer behaviours. Key Insights: Bars, Pubs & Clubs: After a 2.0% decline in February, this segment rebounded with a 0.8% increase […]
Tax & Wage Hikes: Bracing for Rising Costs
The UK hospitality sector is confronting significant financial challenges due to recent tax reforms and wage increases. These changes are reshaping operational costs and staffing strategies across the industry. Key Financial Changes Impacting Hospitality: Employer National Insurance Contributions (NICs): Effective April 6, 2025, the employer NIC rate increased from 13.8% to 15%, and the threshold […]
Planning Outdoor Events? Essential Licensing Tips for Pubs 2025
With the arrival of warmer weather and a notable 5% increase in drinks sales during the first week of April 2025, UK pubs are experiencing a promising start to the spring season. This uptick, reported by CGA by NIQ, highlights the potential benefits of leveraging outdoor spaces to attract patrons and boost revenue. However, before […]
Food Inflation 2025: Key Insights for Hospitality Operators
As of March 2025, UK inflation has eased to 2.6%, marking its lowest point since October 2024. However, this relief may be short-lived. Industry experts warn of an impending resurgence in food inflation, driven by recent tax changes and rising operational costs. Key Drivers of Upcoming Inflation Increased Operational Costs: The April 2025 Budget introduced […]
Chicken Shortage: How Pubs & Restaurants Can Stay Ahead
UK pubs are confronting significant challenges due to a tightening chicken supply chain and escalating costs. Popular menu items such as chicken wings, burgers, skewers, and Sunday roasts are under pressure as domestic producers struggle to meet demand, and avian flu impacts imports. Key Factors Contributing to the Chicken Crisis: Domestic Production Constraints: UK chicken […]
Warm Weather Boosts Pub Drink Sales
The first week of April 2025 brought a welcome uplift for UK pubs, with average drinks sales in managed venues rising by 5% compared to the same period in 2024. This increase, reported by CGA by NIQ’s Daily Drinks Tracker, follows a 2% sales growth in March, signalling potential momentum for the on-trade sector after […]
Are You Pouring Loss Per Pint?
According to the BBPA, the average £4.80 pint is now pouring at a 9p loss. To keep the usual 12p profit, prices would need to rise to £5.01. We’ve been working closely with our hospitality clients, and the response isn’t one-size-fits-all. Some have raised prices by 50p to protect their margins. Others, less affected by […]
