The Scottish Licensed Trade Association (SLTA) has released survey results suggesting that half of the pubs, clubs, restaurants and hotels that it represents were down in terms of sales during Christmas and New Year 2022 versus the last 'normal' festive season.
A further 45% are facing energy rises of more than 250%, while 40% of outlets are facing added costs via rateable value increases.
As a result, 60% are closing early or for full days and won’t be operating to their full opening hours during the first quarter of this year.
Meanwhile, 40% of outlets had to restrict opening as they still face post-Brexit staffing issues.
The research also noted that the industry faces further legislative challenges from Scotland’s Deposit Return Scheme and proposed changes to alcohol advertising and promotion.
All this has led the SLTA to call for urgent government support, with 76% of those surveyed making this request in order to survive during 2023 – although this is a slight decrease from the 86% recorded in September.
Colin Wilkinson, SLTA managing director, said: “Our survey is based upon quantitative research from outlets covering the length and breadth of the country and is supported by major food and drink chains and independent pubs, bars and hotels in Scotland’s hospitality sector.
“We previously warned that it wouldn’t be economically viable for many outlets to remain open and we are now seeing this come to fruition, with a knock-on impact on tourism and Scotland’s wider food and drink sector, including the supply chain.
“Christmas and New Year 2022 was the first time since 2019 that our pubs and bars were fully open without Covid restrictions, but the feedback in our survey shows that half of outlets were still in decline versus the last ‘normal’ festive season trading period.
“Adding in increases in rates, operating costs, staff shortages and uncertainty on energy, we urgently call on local and national governments to help our sector, and the associated jobs in the wholesaling, brewing/distilling and food-producing sectors.”
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