This is one huge challenge facing Scottish pubs and restaurants |
They might not have been the most surprising survey findings in the world but they were certainly striking.
And they painted a very clear picture of one of the huge challenges facing the Scottish hospitality sector.
In the survey published last week by industry body Scotland Food & Drink’s insight hub, The Knowledge Bank, 58% of Scots declared they are cutting back on meals and drinks in hospitality venues.
That is an eye-catching proportion.
And it most certainly underlines a major demand challenge for bars and restaurants.
Financial pressures on households are flagged as a key factor by The Knowledge Bank.
This is entirely understandable, given household budgets have been under such strain for so long against an extremely unappetising UK economic backdrop.
People have had to endure the Conservatives’ ill-judged austerity policies and foolish hard Brexit, the coronavirus pandemic, and the extreme peak in inflation in autumn 2022, with these grim price rises baked in.
And the cost of living continues to rise at a significant pace, albeit not as dramatically as it did back in 2022.
Of course, the surge in prices is something of a vicious circle when it comes to hospitality.
The cost of dining and drinking out has risen dramatically in recent years, as hospitality venues have experienced sharp increases in their own expenses.
This rise in prices in bars and restaurants then makes it more difficult for people whose own incomes are coming under so much pressure in real terms to engage in discretionary spending as they focus on making ends meet.
It was interesting to hear the comments of a consumer sector expert last Friday on the issue of hotel room prices.
These comments came as the latest monthly figures showed Scotland’s hotel sector........