08/02/2022
Hospitality and tourism bodies push case for retained VAT reduction
A group of hospitality and tourism bodies have published a study which highlights the benefits the UK government could accrue over a decade if the current reduced level of VAT is retained. The report - produced collaboratively between the British Beer and Pub Association, UKHospitality and the Association of Leading Visitor Attractions claim that keeping the 12.5% rate over the next decade could create 286,850 jobs, generate an addition £7.7b of additional turnover and deliver £4.6b in fiscal gains to HM Treasury. This could result in a positive return on the government's investment in less than five years, reports Pub & Bars.
RedCat continues to build Coaching Inn portfolio
RedCat Pub Company has acquired The Crown Hotel in Boroughbridge, Yorkshire, advises Big Hospitality. The hotel will be operated by RedCat's subsidiary, The Coaching Inn Group, which it acquired last August. It brings The Coaching Inn Group's estate up to 24 sites. Since the acquisition of the group by RedCat - an investment vehicle founded and chaired by former Greene King chief executive Rooney Anand - it has expanded the business through the acquisition of six additional sites.
Pubs in 'fragile state' as 1 in 3 left with no cash reserves
Pubs have been left in a 'fragile state' with no cash reserves, forcing some to consider ceasing trade as one in 10 licensees believe their business is currently unviable, according to the latest British Institute of Innkeeping member survey. The latest survey revealed more than one in three respondents currently have no cash reserves in their business and of those that do, one in two only had up to two months left before the coffers are empty, advises Morning Advertiser.
CO2 industry strikes deal to avoid shortages
A new deal has been struck to avoid a potential shortage of CO2 in the food and drink industry. There were fears another shutdown could occur this month after a three month deal brokered by the government came to an end on 31 January, with the food industry raising concerns this could lead to issues with food and beer production. A short government statement last week said the CO2 industry had reached a new agreement to allow production at CF Industries' Billingham plant to continue while global gas prices remain high, reports The Caterer.
Menu price rises 'inevitable' as industry forced to pass on costs
Hospitality businesses will be forced to increase menu prices further to offset cost pressures and the forthcoming return to the 20% level VAT, UKHospitality has warned. The trade body says that restaurants and pubs will pass on double-digit price rises to customers with a survey of more than 340 hospitality businesses finding that almost half of the respondents (47%) will increase prices charged to customers by over 10% this year, advises Big Hospitality. The hospitality survey, which represents 8,200 venues employing 190,000 people, found that 15% of businesses anticipate having to increase their prices by over 20%.
And Finally...
To celebrate National Pizza Day on Wednesday 9 February, MOTH have teamed up with their favourite pizza places across London to giveaway more than 500 cocktails to lucky London pizza lovers. The event kicks off at 5pm and a full list of participants can be found at Hot Dinners.