New research published by Peckwater Brands, has revealed that 58% of UK hospitality businesses say that the Covid-19 pandemic has put them at risk of closure.
The study also found that 43% do not believe their business will exist in five years’ time, and two-thirds have seen a substantial decline in income since the onset of the pandemic.
“While the pandemic has impacted all industries, few have had to overcome harder or more numerous blows than the hospitality sector,” said Sam Martin, chief operating officer of Peckwater Brands.
“Positively, however, our research suggests managers have accepted that they must adapt to survive. From finding cheaper suppliers to embracing takeaway services, it’s encouraging to see hospitality businesses thinking creatively about how they can increase their income throughout such a challenging time.
“If businesses are willing to be flexible and creative with their approach to operations, I have every confidence that 2022 will be a much brighter year for the hospitality sector.”
In the survey of 250 UK restaurants, bars, cafés, and takeaways, almost two-thirds of hospitality business leaders had seen their mental wellbeing significantly impacted by the stresses of the pandemic.
Three-quarters said they relied on takeaway services to stay afloat during the pandemic and 69% have sourced cheaper suppliers to improve profit margins.