Hospitality venues across the UK are reducing opening hours and staff numbers amid rising energy and supply costs brought about by conflict in the Middle East, with many close to exhausting their limited reserves.

The increased outgoings have come just as business rates and the national minimum wage rises take effect, creating what CMS hospitality sector specialist David Roberts described as a “perma-crisis.”

“This is just the latest in a long procession of inflationary pressures that the industry is facing,” said Roberts. “It’s starting to feel like a perma-crisis.”

Speaking to the Financial Times, UKHospitality chair Kate Nicholls observed that businesses are now facing a “real triple whammy” of increased costs, with the petrol crisis having a disproportionate effect on rural pubs and restaurants.

“If you need to fill your tank, you have to do that immediately,” said Nicholls. “You can’t hedge against that.”

Shaun Whitehouse, owner of the Lanes Hotel and restaurant in Somerset, said he has had to reduce staff working hours in order to mitigate a £500 rise in weekly operating costs, while director of Upham Inns, Ian Dunstall, said his reserves are “running low.” 

Even pub giant JD Wetherspoon is not immune, with chair Tim Martin adding the entire sector is “possibly more vulnerable than it’s ever been.”