As the sector continues to go to battle against the cost pressures across the board, The Morning Advertiser wants to hear your thoughts on business confidence in our snap poll.
Recent data from the CGA by NIQ Business Confidence Survey, released last month, showed four in 10 (41%) firms felt confident about the market over the next 12 months – an eight-percentage point slump from October (49%).
The poll also revealed 9% of leaders believed their business was at risk of failure this year, which was four percentage points more than October 2023, while 10% said their organisation had no cash reserves.
Raising concerns
Rising wage costs, energy price hikes, interest rates, food and drink inflation, insurance and rent rises were all raising concerns for those surveyed.
Additionally, the top three requests from the Government to support the sector were a VAT cut, business rates reform and a permanent lowering of the business rates multiplier.
Elsewhere, the Bank of England announced interest rates would remain at 5.25% earlier this month and the price of a pint was estimated by the Office for National Statistics (ONS) to have jumped 5.6% in the year to February 2024.
Meanwhile, inflation fell to 3.4% in the year to February 2024 – the lowest level in almost two and a half years, data from the Office of National Statistics (ONS) found, though food and drink inflation remaining higher than the headline rate.
Broadly positive
The number of pubs and breweries entering insolvency also rocketed by 48% and 82% respectively in 2023 data from Price Bailey and Mazars recently revealed.
Richard Bradbury, managing director of Theakston brewery recently told the MA while he was an “optimist”, future viability relies on turning demand into profit.
He said: “I'm positive around the fact people still like going to pubs. But I am conscious that, even though the top line turnover for pubs might look optimistic, the cost pressures they're facing mean a lot of venues are trading at low levels of profitability.
“Pubs being able to turn that consumer demand into being able to sustain themselves as businesses is key to viability for them and for the future viability of the industry, but I am broadly positive.”
