by Tiange Cao

The Scottish hospitality industry finds itself at the centre of economic turmoil amidst the effects of a growing cost of living crisis. With soaring prices and tight budgets, businesses in the sector are facing not only the challenges posed by the post-epidemic situation, but also a new set of pressures.

Around the time of the pandemic, a report released by the Fraser of Allander Institute at the University of Strathclyde Research Institute revealed that workers in the hospitality sector were more likely to be in working poverty than workers in other industries. The report shows that around 30-35 per cent of hotel workers change employers each year – twice as many as in other sectors. This can add thousands of pounds to a company’s annual losses.

Here’s what Daniel, general manager of the Kitty O’Shea’s Bar, had to say about the pressures of staff rotation during Pandemic’s years in business.

“During COVID-19 we did not operate, and many people left the hospitality industry. This was evident in the chef and security industry. People found more comfortable jobs. It didn’t pay as much, but when you consider the extra stress, these people were under at work, maybe the easier jobs were better for them.”

David Carson, the general manager of PLATFORM in Glasgow also said that’s so hard to cover the bills.

“Electricity bills in here has risen to almost ten thousand pounds a month. That is a huge increase, the impact in general from the cost-of-living crisis and the energy costs has been massive. It probably costs us about one thousand pounds a day just to open the door.”

However, the hospitality industry has shown remarkable resilience and adaptability in the face of the adversity of the cost-of-living crisis. Many managers, including David, are reassessing the discretionary spend of their businesses, seeking value for money and endeavouring to make ends meet while maintaining quality standards.

At the same time, the sector is receiving support from Scottish Hospitality Group, the organisation’s Stephen Montgomery, executive director, shared his opinion.

“We make sure that staff are fed at the start at the shift or at the end of their shift. We provide food and breaks during shifts. Also we give a 25% discount to our staff’s families when they come to our restaurant and also give them a cost of living grant worth £300.”

This will improve staff wellbeing and increase employee happiness at work to help the hospitality industry through the crisis and act as a beacon of hope for business owners through these uncertain times.

As the cost of living crisis continues, the hospitality industry remains firmly committed to delivering exceptional experiences. While challenges remain, the industry’s ability to adapt and innovate and support from organizations can still offer a glimmer of hope for a brighter future.

Follow the link to the hospitality industry homepage in the article below:

https://www.facebook.com/kittyosheaspubs/

https://scottishhospitalitygroup.com

FRASER OF ALLANDER at the University of Strathclyde report link:

https://fraserofallander.org/new-report-on-the-future-of-hospitality-in-scotland/