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- author, mary williams
- Role, bbc news
Bars and restaurants must cut hours, reduce staff and settle for razor-thin profits to stay afloat, owners say.
The Welsh Government’s tax support for businesses will be reduced next month as the industry faces high energy bills and rising food and drink prices since the pandemic.
But these challenges haven’t stopped some from starting new ventures.
The Welsh Government said it was making every effort to use available resources and powers to provide support.
Nicola Martin, director of Food by Sean in Swansea, said: “We started the company at the height of the pandemic… and it has gone from strength to strength.”
But she said their latest venture, the Môr restaurant in Mambles, was making a slim profit.
“At the moment we are not raising prices to deal with inflation. This is a sacrifice that businesses have to make in order to survive.
“This is because staff are working under extremely tight schedules.
“It’s a concern, but we have to make sure we have a good product so people keep coming back.”
General manager Debbie Durham of the Rok restaurant in Mumbles, which opened last month, said she had been keeping an eye on costs and overhead.
“We’re open Thursday through Sunday,” she said.
“People can also choose small plates so they don’t end up spending a fortune.
“From a management perspective, there is a constant need to keep an eye on all costs and overhead.
“The same goes for staffing, the minimum wage is going up again.
“Everyone faces these challenges.”
According to trade body UKHospitality, 25% of venues in Swansea have closed since the pandemic began.
Its Wales branch called on the Welsh government to reverse April’s decision to cut business rates support from 75% to 40%.
Impending dwindling support is one of the reasons former pub owner Rhian Davies in Cardston, near Neath, has had to close his doors.
“Last month, I had to return the keys. We had no choice,” Ryan said.
“Electricity prices have gone up, it’s about £1,600 a month. Rent is £800 plus a week.
“We can’t go on any longer.”
Robert Bowen, a hospitality expert at Cardiff University, said companies had to adapt their business models to survive in the hospitality industry.
“Of course there are issues with funding and it’s hard to get help and support,” he said.
“Business rates relief in April is going to be difficult… but we’ve probably gone through the most difficult period in years now. So we do think the future is looking better.”
A spokesman for the Welsh Government said: “We are very aware that the ongoing cost of living and business cost crisis continues to cause difficulties for small and independent businesses across the country in a variety of sectors.
“We are offering a range of permanent non-domestic rates relief, worth £250m a year, fully funded by the Welsh Government.
“This builds on nearly £1 billion in interest rate relief package support for these sectors since 2020-21.”
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