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Hospitality businesses to raise menu prices by 6% in the next 12 months
Two in three industry leaders experienced hikes in energy costs.
With inflation and labour costs, hospitality businesses are forced to implement increases in menu prices by 6% in the next 12 months as they bear the brunt of rising prices.
According to CGA and Fourth’s new Business Confidence Survey, these business leaders have already raised their menu prices by an average of 9% in the past year.
Industry leaders are also bearing the brunt of rising inflation, with 71% saying they experience increases in energy costs whilst six in 10 said they experienced significant food and drink price inflation.
They are also suffering from insufficient food and drink items, with 81% saying they experienced reduced product lines whilst more than half said products are not being received or delayed.
Despite inflationary pressures, almost half of hospitality leaders in the UK are still focusing on efforts for sustainability.
Nearly 50% of businesses are seeking ways to cut their carbon footprints. Their priorities include shifting to renewable sources, consolidating deliveries, working with eco-friendly suppliers, reducing food waste and adding more plant-based options to menus.
Sebastien Sepierre, managing director, EMEA, Fourth, 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."
