Only half of pubs are making a profit due to significant cost increases across the industry, according to the British Institute of Innkeeping (BII).
Trading insight from its members highlights the severe impact of these increases on their businesses, driven by inflation and continued high energy prices.
Despite two out of three respondents reporting trading back to normal levels or a rise in sales over the past year, only one in two of these are making a profit.
BII CEO Steve Alton says that although many pub businesses are seeing strong sales, this is “simply not translating into profit”.
“This is holding back their ability to further grow their businesses through investment in their offer and their teams,” he adds.
The BII urges the government to 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”, Alton adds.
”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.
