The cost inflation has caused half the night industry to feel “unsure” on whether it will be able to last the next 12 months.
According to Night Time Industries Association (NTIA) research, over half of businesses in the sector are seeing a 30% increase in operating costs compared to pre pandemic levels.
48% of the 200 businesses the NTIA reached out to said that they are “barely breaking even” with 20% claiming they lose money on a day-to-day basis.
The combination of pandemic debt, growing energy bills, workforce challenges, supply chain, increased insurance premiums and product cost increases are causing an array of financial issues.
Those who are renewing gas and electricity contracts have seen a 37% rise in energy bills, while 15% of those surveyed said they had lost half of their pre-pandemic trade.
“These figures are extremely hard to ignore, the situation is worsening day by day, with operating costs becoming untenable. We are starting to see the impact on customers through slowing ticket sales, bookings and frequency of visit,” NTIA boss Michael Kill said.
Kill added: “Our industry is still extremely fragile, many will struggle to survive another crisis.
“Time is running out, the Chancellor must act now, and answer the calls from the industry to reduce VAT back down to 12.5% and an energy cap for SME businesses.”
Becky Buckle is Mixmag's Digital Intern, follow her on Twitter