28/03/2023 09:18:00
JD Wetherspoon chairman Tim Martin has warned pubs are still struggling with "ferocious" inflationary pressures around energy, food, and staffing. The pub group, which runs over 840 UK sites, saw its operating costs rise £73m to £878.5m in the six months to 29 January, reports The Caterer. The chain reported a pre-tax profit of £4.6m in its half-year results, down 90% on 2019 levels. However, the figures put Wetherspoon back in the black after it reported a £26.1m loss during the same period in 2022. Martin said he was "cautiously optimistic" about the future with like-for-like sales up 5% and revenue rising 3% to £916m.
The closure of the Energy Bill Relief Scheme (EBRS) for firms has the potential to mean companies are forced to close, downsize or restructure, a business organisation has warned. The Federation of Small Businesses (FSB) worked out how much bills could rise when the EBRS replacement - the Energy Bills Discount Scheme (EBDS) - kicks in on 1 April. The FSB estimated a pub using 48,000kWh a year in electricity and 192,000kWh in gas that signed a contract in August 2022 would have received a reduction of £60,000 on its estimated £85,000 annual energy bill under the outgoing EBRS. With the new EBDS scheme, the pub would receive just over £2,000 in support, leaving a balance of £83,000, reports Morning Advertiser.
Plans for a £48m hotel spanning nine storeys at a major quayside development have been approved. The 344-room hotel will be built at the Baltic Quarter in Gateshead with developers saying more than 100 jobs will be created when it opens. Plans were redesigned and a new site chosen after nearby residents feared it would be "monstrously overbearing". Gateshead Council said the "milestone" hotel is an "essential part" of the area's development, advises the BBC. A 12,500-capacity arena, conference centre and set of restaurants, are also expected to be constructed by 2025.
The rate of inflation jumped unexpectedly in February, driven primarily by rising alcohol prices in pubs and restaurants following discounting in January, advises Big Hospitality. According to the Office for National Statistics (ONS) the Consumer Price Index (CPI) rose by 10.4% in the 12 months to February 2023, up 10.1% in January. It follows three consecutive months of falling inflation prior to February, cooling from a peak of 11.1% in October. The main driver behind the increase in the rate between January and February 2023 came from restaurants and cafes, where prices rose by 11.4% in the year to February 2023, up from 9.4% in the year to January 2023.
Stella Artois partners with British artists and Hospitality Action to raise money for struggling pubs, reports Caterer Licensee Hotelier News. Inspired by the launch of Stella Artois Unfiltered, 'Beer, au Naturel', the eleven-piece collections showcase iconic British pub signs in a more 'free-spirited' approach.