This summer, four psychiatrists published an academic journal illuminating the fact that ‘overexposure to COVID-19 information’ was amplifying emotional distress. The article spoke of ‘an infodemic’ accompanying the pandemic and the way this was, in turn, exacerbating health problems of the population. A similar thing was proved to have happened during 9/11, Boston Marathon bombings and the Ebola epidemic. Although news regarding COVID might not have the same hold on us it once did, arguably the mass panic insighted has not dissipated but instead has been replaced with the coverage of the cost-of-living crises.
It is undeniable that the cost of our utility bills has increased. Utility Helpline, a branch of Sidney Phillips specialising in business energy management for the pub and licensed trade, undertook research that showed that gas prices have risen from 3p to 4p/kwh to highs of 30p/kwh and electricity prices show a similar pattern, rising to six times the cost they were before the crisis. With no commercial price cap in place, businesses not in contract or looking to renew contracts are seeing massive increases in energy costs. The reasons are complex but the ‘perfect storm’ that is increasing demand, limited supplies and a shortage of gas storage space means that even with the market has lowering recently due to milder weather and gas storage being well stocked, experts don’t see the market lowering now until 2024.
So, why are Sidney Phillips and Utility Helpline experiencing positivity in the hospitality industry? Sidney Phillips have seen sales up 25% compared with the same period last year and general enquiries up 40%. This could be because operators are often locked into long term contracts which means that they have no other choice than to weather the current storm of rising running costs, or it could be more nuanced than that.
Looking at the last fifteen years, the licensed trade time and time again shows itself as a robust and confident industry. 2007 saw the introduction of the smoking ban and many working in hospitality, but specifically licensed hospitality, had serious concerns about the impact this would have on their businesses and livelihoods. The financial crisis of 2007-2008 then added ‘fuel to the fire’ and although there are sad instances of pubs, bars and hotels closing doors during this in time, the industry as a whole rose like a phoenix from the ashes and survived these seismic shocks.
How could this be? In a similar vein to 2007, the industry is now experiencing rising utility costs after the volatility of a couple years of COVID the subsequent shutdowns, so why are sales and enquiries up? There is an argument to be made for the way the inherent features of the trade provide a draw for the consumer that cannot be satisfied elsewhere. Whilst high street shops are suffering from reduced footfall and have been since businesses began to migrate online, the social nature of doing something as simple as ‘grabbing a pint at your local’ or undertaking a bar crawl to celebrate life’s milestones is still an integral part of British society.
From speaking to those engaged in the day-to-day running of the licensed and hospitality trade, we are confident that the ‘cost of living crisis’ is another storm that this industry will weather and the consumer appetite for the experience that our vendors and clients are supplying has not yet been, and perhaps will never be, replaced with a better alternative.
For further information about Utility Helpline, you can visit their website here or call them on 0800 043 0423. Alternatively, you can get in touch with Sidney Phillips on 01981 250333 or email sales@sidneyphillips.co.uk. or click here to view our recently added properties.