Feeling the Squeeze

There’s a scene in the first Star Wars movie (the original one…not the awful prequels) where Luke, Leia and Han find themselves trapped in a garbage compactor as the walls start closing in…

Right now, it feels like an apt metaphor for the world of hospitality!

We’ve talked before about the challenges our industry faces, and the list keeps growing:

• Ongoing food price inflation, driven by the war in Ukraine and Brexit

• Cost of living crisis, which eats into disposable income and dents demand

• Increase in employer National Insurance contributions last April

• Hike in business rates coming this April along with an uplift in valuations

The latest news, that pubs and music venues will get extra help with business rates, but that restaurants, cafés and hotels will not, is arguably the most infuriating part. It acknowledges there’s a problem… and then fixes only part of it!

As the walls close in, the heroes of Star Wars start looking for a way out, or a way to at least slow things down. And that’s pretty much where small operators like us are now...trying to find room to manoeuvre, but facing a series of bad options:

• We could buy cheaper ingredients and lower our standards

• We could cut staff hours and impact service (not to mention people’s livelihoods)

• We could raise prices and risk a spiral of falling covers

• We could shrink portions, which is the flip side of the same coin

All of these options violate the principles that brought us into this business. So we’re not taking them. Instead we’re choosing to continue walking the (very) fine line where businesses like ours can still work...just about!

Back in a galaxy far far away, the characters start yelling into the radio for help. And without wanting to stretch this metaphor too far…that’s where the hospitality sector is right now

Everyone, from small independents to famous named chefs and even big national restaurant groups are calling for help. But the only people on the other end of the radio are in government…and they’re not listening

This week, the Evening Standard launched a campaign to shine a light on the pressures facing hospitality. It adds to the voices already out there — like London On The Inside, which we supported last autumn, and UK Hospitality, who continue to campaign for a reduction in VAT to 12.5% for the sector

The article is worth a read and outlines the problems in stark terms, there’s a link below if you want to have a read…

Evening Standard Campaign

Meantime, what are we doing?

• We had a visit from our MP Vicky Foxcroft last month so we’re following up with a letter to her

• We’re continuing to support groups like UK Hospitality and LOTI in their work

• We’re making small tweaks where we can and where this doesn’t compromise our values

• And we’re watching with interest as pubs start banning MPs from their own locals to get their point across…it seems to be working!

As we’ve said before — we’re doing OK. There’s no imminent danger of us giving up or shutting the doors

This is more about adding our voice to the growing calls for action and letting off a bit of steam!

Because this industry is full of brilliant people doing brilliant things — and it doesn’t deserve to be crushed!