Chilling Impact of TikTok's Empty Restaurant Trend Reveals Hospitality Industry's Struggles
As January sees a significant drop in customers at pubs and restaurants across the UK, many in the hospitality industry attribute the decline to the ongoing cost of living crisis. Workers like Willow Gwyn-Williams, a pub manager, share their experiences of a quieter season, exacerbated by the financial strain on consumers. TikTok videos under the hashtag ‘January in Hospitality’ depict empty venues and staff’s creative efforts to stay engaged during slow times.
Experts, including UK Hospitality’s chief executive Kate Nicholls, warn that the situation may worsen due to impending increases in employer National Insurance contributions and minimum wage, potentially leading to price hikes of 6-8% and staffing cuts in up to 80% of businesses. This concern is echoed by leaders of multi-venue operations like Louise Maclean of Signature Group, who fear the impact on sales and their ability to keep operations afloat.
Meanwhile, small business owners like Sonia Johnson of Mamars bakery express worries about rising staffing costs and increasing prices from suppliers, while restaurant owner Mohammed Sarnwal anticipates necessary menu price adjustments to maintain profit margins.
The government claims support measures, including cuts on alcohol duty and relief on business rates, will help, but many business owners feel the ongoing costs threaten their survival. The industry also sees a notable rise in discount offerings to attract customers, as a Deloitte survey indicates that consumers plan to reduce spending on dining out in early 2025.
Looking ahead, some believe that stability in essential costs could lead to a gradual recovery in the hospitality sector, though the current outlook remains grim.