A joint survey from UKHospitality (UKH), the British Beer and Pub Association (BBPA), the British Institute of Innkeeping (BII) and Hospitality Ulster found higher energy, food and drink costs were eroding gains made from stronger summer sales.
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Some 80% of respondents said the current business environment was stifling investment, limiting growth and employment opportunities.
Costs continue to rise
Almost three quarters of businesses, 74%, reported higher electricity bills during the past three months.
Gas costs increased for 65% of respondents, while 61% saw heating oil costs rise.
Looking ahead, food and drink inflation was identified as the biggest non tax concern for the next 12 months by 88% of businesses, followed by energy prices at 80%.
Jobs opportunity
The survey also highlighted the potential for further job creation if the sector’s tax burden was reduced.
Almost half, 48%, of businesses said they would invest in employing more young people if taxation was eased, while 57% said a lower rate of employer national insurance contributions would help protect against further job losses.
In a joint statement, the trade bodies said: “A great summer of sunshine and sport brought customers through the door to connect with friends and family, but strong sales are not the same as healthy profits.
“Energy costs have risen sharply and food and drink inflation remains stubbornly high, so many businesses are working harder than ever for less.”
The bodies urged Government to use the upcoming Budget to reduce the sector’s tax burden and support investment, growth and jobs.
