Prices rise by 7.1% in hospitality to offset soaring costs

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Prices rise by 7.1% in hospitality to offset soaring costs

Related tags Fourth Hospitality Inflation Price Price increases

Hospitality businesses have raised their prices by an average of 7.1% to offset rising costs, according to new data.

Despite strong sales growth during the festive period, the high cost of doing business has meant hospitality businesses are 'struggling to stay afloat' and are having to take cost-saving measures to maintain profitability, data from technology solutions business Fourth shows.

Net sales revenue grew by 6.1% in fourth quarter of 2023 compared to the same period in 2022, with December sales particularly strong across the industry, rising 10.5% year-on-year.

Sales in restaurants rose by 2.9% in November, according to Fourth, with sales up 6.4% in December. Weekday trading levels increased across the sector in fourth quarter of last year 2023, revenue growing by 4.5% between Mondays and Thursdays and weekend sales up 1.5% on Fridays and Saturdays during the quarter.

However, despite these increases food price inflation has also led to challenges such as a decline in headcount and total hours worked, says Fourth.

“With the festive trading period being such a crucial time for hospitality, it’s fantastic to see such a significant growth in sales compared to 2022. These figures can hopefully provide operators with a sense of cautious optimism as we head into 2024," says Sebastien Sepierre, managing director – EMEA at Fourth.

“However, the high cost of doing business across the sector continues to be a major concern for operators, who are looking to control costs in an effort to remain profitable during this turbulent economic period."

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