Gloucestershire business owners take hit over rising prices
By Richard Wright | 10th November 2021
Business owners in the hospitality sector in Gloucestershire have 'held prices and taken a hit' in order to encourage customers back.
On top of problems with supply chains and rising wholesale costs, firms have now been hit by increasing utility charges.
One Gloucestershire-based hotel group is reporting a 174% rise in their gas and electric supplies, that's a £3000 a week increase.
Kate Nicholls, chief executive of UK Hospitality, said some of her association's members, which include restaurants, hotels, and bars, expect to increase prices three times before April 2022.
Steve Gardner-Collins, chairman of Visit Gloucestershire, said: "There is no doubt that the last 18 months have held back the reality of where hospitality businesses find themselves.
"Out of desperation to survive business owners have held prices and taken a hit, particularly this year in order to encourage customers to come back.
"Now that we are entering a period of reset with significant cost price inflation coming through the supply chain, consumer prices, if not before, would certainly be hit hard after Christmas."
Kate Nicholls, of UK Hospitality, told the government's Environment, Food and Rural Affairs Committee: "You're going to see a really intense squeeze on margins in the run-up to Christmas, and then an inevitable impact felt by consumers because it will have an inflationary effect."
Steve Gardner-Collins added: "Once again hospitality businesses bear the burden of the next phase of this post covid, post Brexit mix, and unfortunately we will all have to find a way to pay for it."
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