Pint of beer for £9 a real possibility as rising costs hit restaurant goers

According to CNBC,inflation in the U.K. hit 9.4% this year, which is the highest it has ever been in 40 years. The hospitality industry too is grappling with this growing inflation and the latest figures to emerge does not bode well for the future of restaurant owners and consumers alike.

According to a survey report by CGA, which is a consultancy that works with the hospitality industry, hospitality businesses have been assailed by supply chain problems and rising energy costs. Businesses are also dealing with food shortages, rising labour cost and reduced margins.

This implies that the hospitality industry would have to shift over some of the burden of this increase onto its customers.

Restaurant and bars are likely to raise menu prices over the next year

For customers, this implies a bump in the prices they would have to pay for food and drinks. Following the latest report by CGA, CNBC reports that since 2008, the average cost of a pint of beer in the U.K. has risen by a dizzying 70%. Where once upon a time, one could buy a pint for £2.30 in 2008 or for £3.95 in 2022, the cost of an average pint in London has escalated to £8.06 in 2022. At this rate, the price of a pint could very well reach £9.

According to CNBC, the increasing costs of food and drinks have created concerns in the hospitality industry that more and more consumers might prefer to stay home than pay the soaring prices in bars and restaurants.

The hospitality industry is facing many challenges

The CGA report quoted Sebastien Sepierre, managing director, EMEA, Fourth who said,

The hospitality industry has had a torrid time over the last two and a half years, and the ongoing supply chain disruption is the latest challenge that businesses have had to contend with. Recent data published by Fourth indicates that average overall costs are up 10% on 2019, and that the average gross profit margin has fallen from 78% to 74% in the last 12 months.

CNBC reported that the hospitality industry has also been impacted by rising fertiliser costs and increased cost of supply and transport due to rising diesel prices. It looks like it will be challenging times ahead for the hospitality industry and their customers alike.

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