Survey claims just one in two operators making profit

Just one in two members of the BII are making a profit.

Just one in two members of the British Institute of Innkeeping (BII) are making a profit, according to a new survey from the trade body.

The insight from BII members highlights the impact of exceptional costs on their businesses over the last few years.

While two thirds of respondents reported trading being back to normal levels or seeing a rise in sales over the past year, fortunes are mixed when it comes to profitability, with only one in two of these making a profit.

Pubs have seen significant cost increases, driven by high inflation across all areas of their business in addition to inflated and controversial energy prices.

The BII has written to the chancellor ahead of the Autumn Statement, calling for further investment in pubs and bars. 

"Many long-standing, viable and diversified pub businesses are seeing strong sales simply not translate to profit," says Steve Alton, CEO of the BII. "This is holding back their ability to further grow their businesses through investment in their offer and their teams. The exceptional short-term pressures will abate and government must now 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. 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.

You may also be interested in…