Scottish hospitality pleads for more support amid ‘tidal wave of economic challenges’

A post-Christmas/New Year survey carried out by the Scottish Licensed Trade Association (SLTA) highlights the unprecedented challenges faced by businesses, with huge increases in the cost of energy, rates and post-Brexit challenges in recruitment driving 76% of outlets to say they require Government support to survive in 2023. 

Half of the businesses surveyed reported that trading over the 2022 festive period was down on 2019. Costs, meanwhile, are rising massively, with 45% reporting energy rises of over 250%; and  40% of outlets facing added costs via rateable value increases.

More than half (60%) of outlets are closing early or for full days and won’t be operating to their full opening hours in the first quarter of 2023; while 40% have had to restrict opening as they still face post Brexit staffing issues.

“We previously warned that it wouldn’t be economically viable for many outlets to remain open and we are now seeing this come to fruition with a knock-on impact on tourism and Scotland’s wider food and drink sector, including the supply chain,” says Colin Wilkinson, SLTA managing director.

“This festive season was the first one since 2019 that our pubs and bars were fully open without Covid restrictions, but the feedback in our survey shows that half of outlets were still in decline versus the last ‘normal’ festive season trading period.

“Adding in increases in rates, operating costs, staff shortages and uncertainty on energy, we urgently call on local and national governments to help our sector, and the associated jobs in the wholesaling, brewing/distilling and food-producing sectors.”

The SLTA's latest survey is based upon quantitative research from outlets covering the length and breadth of the country and is supported by major food and drink chains and independent pubs, bars and hotels in Scotland’s hospitality sector.

Wilkinson notes that alongside this ‘tidal wave of economic challenges’, outlets also face further legislative challenges in the months ahead.

“Our members are also concerned about the impact of Scotland’s deposit return scheme (DRS) and the proposed restrictions on alcohol advertising sponsorship which will impact on many everyday aspects of pub life – from sponsoring the dominos team to serving local beers in branded glasses,” he adds.