Scottish hospitality continues to face rising costs - SLTA

The Scottish Licensed Trade Association (SLTA) has released a snapshot survey of the challenges facing Scotland’s pubs, bars and hospitality venues in 2024.

The summer survey responses, representing just over 400 pubs, bars, restaurants and hotels, cover the full spectrum of licensed hospitality businesses in Scotland and contain key insights into the continued challenges facing hospitality, driven by a challenging economic environment, rising costs and a reduction in visits to hospitality venues.

“Despite the uplift from Euro 2024, in 62 per cent of outlets trading is down versus last year," said Colin Wilkinson, SLTA managing director, said: Visitors are more selective on when they visit, with 19 per cent leaving earlier and 16 per cent only visiting our pubs and bars for events. Our report identifies that 64 per cent of respondents highlighted less spend, fewer visits and less time spent in the venue.”

Colin Wilkinson, SLTA MD

The SLTA has been conducting Market Insight Surveys for nearly 10 years, based on quantitative research from outlets covering the length and breadth of the country. They are supported by independent pubs, bars and hotels as well as major food and drink chains in Scotland’s licensed hospitality sector.

“Our survey has now become a barometer which measures the pulse of Scotland’s hospitality sector. Over that time, we have seen the impact of Brexit, Covid, and right now our biggest challenge is not only spiralling business operating costs but also the cost-of-living increases that are having an impact on the ‘leisure pound’.”

Wilkinson added: “In our January 2024 survey, we highlighted that 96 per cent of our respondents agreed with the statement ‘The Scottish Government is out of touch with the business community’. (Scottish firms feel that Scottish government is out of touch with the business community, Fraser of Allander Institute, 30 August 2023)

“With recent changes at Westminster, we call on the Scottish and UK governments to work to support one of our key industries. The most effective way to achieve this is by reducing VAT in the licensed hospitality sector and an urgent review on the commercial rating system.”