Increased pressure

Before the Autumn Budget, businesses across the night economy were already dealing with a 30 to 40% increase in operating costs as a result of the ongoing cost crisis.

Consumer spending has also decreased drastically as disposable income declines, contributing to significantly reduced consumer interaction, shorter dwell times and ultimately lower spend per visit.

NTIA’s latest survey outlines issues facing the industry:

• Extreme running costs: 75% of venues expect extra annual costs, exceeding £30,000 due to factors such as increases in energy prices, social security charges, alcohol charges and minimum wages. Some businesses also face annual hikes in excess of £80,000.
• Job Losses: The NTIA survey also shows that approximately 92% of businesses are forced to cut jobs, leaving thousands of workers without income and communities without the added social and economic benefits these venues provide.
• Forced price increases and service cuts: To deal with rising expenses, over 90% of companies are left to raise prices, reduce staff hours and reduce operating hours, as well as delay key investments.
• Unsustainable labor costs: companies struggle to provide quality service and safety. The weight of increased labor costs creates an unsuitable trading environment for many operators.
• Profitability and profitability concerns are rife, with around 88% of respondents saying the autumn budget will significantly hurt profitability.