The survey, which included information from more than 200 businesses, showed the devastating impact of rising inflation as 48% of respondents stated they were “barely breaking even”.
NTIA CEO Michael Kill CEO NTIA said: “These figures are extremely hard to ignore, the situation is worsening day by day, with operating costs becoming untenable.
Struggling to survive
“We are starting to see the impact on customers through slowing tickets sales, bookings and frequency of visit.
“Our industry is still extremely fragile; many will struggle to survive another crisis.”
Furthermore, 20.2% of operators said they had been losing money when asked if their businesses were still profitable based on the increase of trade cost as 20.8% had lost confidence in their businesses.
Respondents were, on average, carrying £133,957 worth of debt in a culmination of growing energy bills, workforce challenges, supply chain issues and rising cost of food, increased insurance premiums and Covid debt in what the NTIA called a ‘perfect storm’.
A quarter of operators had also experienced losses of up to 50% in the past four months with 36.5% stating their weekly sales had dropped by 30% in comparison to pre-pandemic trade levels.
Time is running out
With more than two fifths (44.7%) of operators unsure if their businesses will survive the next 12 months, the NTIA has called for Chancellor of the Exchequer Rishi Sunak to provide the sector with decisive, thorough financial intervention.
The association has called on the Chancellor to consider measures to support businesses, such as a reduction in VAT to 12.5%, and an Energy Cap for SME Businesses.
Kill added: “Time is running out, the Chancellor must act now, and answer the calls from the industry to reduce VAT back down to 12.5% and an energy cap for SME businesses.”
