‘The situation is worsening day by day’ says NTIA’s CEO Michael Kill on the devastating impact of cost inflation on UK venues.
Inflation is the big word of the moment and the topic of many current conversations. It’s a buzzword that concerns not just economists but everyone, as cost inflation impacts on everyone’s cost of living, including the nightlife industry. The problem is pandemic and UK venues are on the list of victims of this huge bogeyman. Recently, the Night Time Industries Association (NTIA) showed in a survey the alarming figures for UK venues in this post-pandemic, inflation-ridden world.
Surveying over 200 businesses in the UK, this research yielded some clear, if rather bleak, indicators. Of these venues, 44.7% were uncertain about the future, claiming to be ‘unsure’ about the survival of their business in the next 12 months. Additionally, 20.8% were ‘not confident’ that they will last beyond next year. More than half of these businesses also responded that they are seeing a 30% increase in operating cost when compared to pre-pandemic levels. When asked if their business is still profitable, 48% responded that they ‘are barely breaking even’, a bleak picture that gets even darker for the 20.2% who said they are losing money every time they open the door. After two years of the pandemic, this is not the upturn that UK venues envisaged or needed. The big guilty party is undoubtedly the skyrocketing cost of living in the UK. Operating costs are higher as a result of the sharp rise in the price of energy, which, in addition to influencing them, is accompanied by increased costs in the supply chain, such as food and drink. A snowball effect that leads to a frightening spiral.