LONDON (BLOOMBERG) - British diners enjoying a meal out will feel a bigger hole in their pockets in the coming months.
Hospitality chiefs are planning to raise menu prices by 6 per cent over the next year as the rising cost of energy, food and labour weighs on businesses, according to a survey Wednesday (Aug 17).
That's on top of an average increase of 9 per cent in the last year.
Consumers are suffering the highest UK inflation in four decades with prices expected to rise further this autumn and for many eating out is becoming less of an option.
Hotels, restaurants and pubs were among those most affected by Covid-19 lockdowns and many are still hurting from people travelling less, continuing to work from home and being more thrifty with their spending.
"Hospitality's long-term future is bright, but for now leaders will have to find the right balance between absorbing soaring costs and passing them on to guests," said Karl Chessell, head of hospitality operators and food at consultancy CGA by Nielsen IQ.
"The huge supply challenges also highlight the need for urgent and sustained government support for the sector."
More than two-thirds of hospitality businesses have seen significant increases in energy costs and 60 per cent have experienced higher prices on food and drinks.
The Business Confidence Survey includes hospitality companies across 8,500 sites and is produced by CGA and solutions company Fourth.
Fourth works with multi-national companies in the hospitality industry, including Fullers, Gaucho, Hilton Worldwide Holdings, Caffe Nero, Soho House, Wagamama and Stonegate.