With business rates relief ending soon, a new survey reveals that four in 10 hospitality operators don’t expect their businesses to survive the year.
SME utilities comparison specialist Bionic surveyed 500 hospitality and retail businesses to understand owners’ biggest concerns. They were asked questions such as:
- What will be the biggest challenge your business will face in 2025?
- What worried you most from Labour’s first Budget?
- What cost-cutting measures did your business take in 2024?
- Have you felt burnt out while running your business in the past 12 months?
The survey found that 30% of hospitality business owners see the reduction of business rates relief as a major concern. Key statistics include:
- Four in 10 (44%) of hospitality business owners don’t think their businesses will survive the year.
- More than half of hospitality business owners said that they “increased product prices/rates to cut costs in 2024.
- Just under half (48%) of business owners in the hospitality industry (60%) said they were affected by late payments in 2024.
- Two in five of the business owners in the hospitality sector said that “hiring and retaining talent” would be a challenge in 2025.
- Seventy-eight per cent of hospitality business owners felt burnt out to some extent in 2024.
“It’s saddening but not surprising that 44% of hospitality businesses think they’ll cease trading in the next 12 months,” said Bionic’s small business editor Laura Court-Jones.
“Hospitality businesses have had it tough for years since the pandemic, and with reduced business rates relief and the employers’ National Insurance hike kicking in from 6th April, these businesses are going to feel the squeeze even more.”
