Strong summer sales have not turned into profit, trade body survey finds

A strong summer of trading has not fixed the sector's profit problem, according to a joint survey from UKHospitality, the British Beer & Pub Association, the British Institute of Innkeeping and Hospitality Ulster, covered by The Caterer. CGA by NIQ ran the survey in October with operators of more than 9,000 sites.

The cost lines doing the damage - 74% saw electricity bills rise in the last three months - 88% name food and drink inflation as one of their biggest non-tax concerns for the next 12 months - 80% say the business environment is stifling new investment

The trade bodies say nearly half of businesses would take on more young people if the tax burden were eased, and almost 60% say it would protect against further job losses. They are asking the government to cut the sector's tax burden at the Budget next week.

What it means for groups: revenue growth is being absorbed by energy and cost of goods, so the summer will flatter top-line numbers more than EBITDA. We would expect capex plans and hiring for 2027 to stay on hold until the Budget detail is known, and energy contracts coming up for renewal to get board-level attention.