BII insight shows despite strong sales for many pubs, only 50% are profitable due to exceptional trading pressures
The British Institute of Innkeeping (BII) has today revealed trading insight from their members which highlights the severe impact of exceptional costs on their businesses over the last few years. Pubs have seen significant cost increases, driven by high inflation, across all areas of their business in additional to inflated and unfair energy prices. Whilst 2/3 of respondents are reporting trading back to normal levels or seeing a rise in sales over the past year, their fortunes are mixed when it comes to profitability, with only one in two of these making a profit. The BII has written to the Chancellor ahead of the Autumn Statement, taking its members’ voices to the heart of Government to call for further investment in these essential businesses at the heart of their communities. Steve Alton, CEO of the British Institute of Innkeeping commented: “Many long-standing, viable and diversified pub businesses are seeing strong sales simply not translate to profit. This is holding back their ability to further grow their businesses through investment in their offer and their teams. The exceptional short-term pressures will abate, and Government must now invest in these essential community businesses to allow them to weather current trading challenges. Announcing an extension to the existing business rates support for at least another year will be a vital lifeline for many. Also levelling the playing field for pub businesses through reducing unfair and disproportionate taxes, focusing on a specific VAT reduction for pubs and hospitality, will be key to unlock the full potential of our sector.” The BII’s #MyPub campaign has also called on licensees across the country to write to their MPs, asking for their backing for the continuation of the 75% business rates relief seen in England and Wales members, as well as an extension of the same relief to Scottish businesses.