Cost of living: Food and drinks firms cut trading to tackle energy costs

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Food and drink service firms are most likely to cut trading to tackle energy costs, according to research from the ONS. CostOfLiving

Hospitality has been one of the sectors hardest hit by the rising cost of food and energyFood and drink service firms are most likely to cut trading to tackle energy costs, according to research from the Office for National Statistics.It comes as official figures showDerriaghy pub owner Martin Caldwell has decided to close his dining room and only offer food in the bar, resulting in the laying off of staff."Some of them had been here for two to three years.

The combined cost of wages, services, utilities and food prices, had made it very difficult to get anywhere near making a profit. "You can only sustain losses for a certain length of time, particularly small businesses like our own, before you have to take a tough decision to cut your costs and cut your losses," added Mr Caldwell.Passing costs onto customers wasn't an option, he said, as his pub's customers were struggling too.Whether inflation peaked at 10% was not the issue, he said: "It was how long the inflation lasted.

 

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