Winter blackouts could result in ‘tremendous' loss of stock for hospitality businesses

The British Beer and Pub Association (BBPA) has warned that blackouts this winter could see "tremendous loss of stock" among businesses, adding further strain to businesses "at an already critically difficult time".

National Grid has warned that a worst-case scenario could see businesses' electricity cut off for planned three-hour blocks.

Emma McClarkin, chief executive of the British Beer and Pub Association said: "Like their customers, pubs and breweries rely on a sustained, guaranteed energy supply. It is essential they are able to provide welcoming spaces and keep production lines running.

"Publicans and brewers have already been facing uncertainty for some time as we emerged from the pandemic into a cost of doing business crisis and have tried to remain resilient. Many have taken measures to ensure they can keep trading, from reducing opening hours to changing menu options, but blackouts could result in a tremendous loss of stock that businesses simply will not be able to recover. This news will add further strain to businesses at an already critically difficult time."

Some pubs are opening their doors to help people struggling to heat their homes this winter. One venue in Blaenau Ffestiniog said that it would keep its heating on and people were welcome to sit inside without having to buy anything.

But since being hit by pandemic restrictions, the hospitality sector has continued to be pummelled by market challenges, staff shortages and rising costs, with foodservice inflation hitting 15% for the first time and falling consumer confidence amid the cost of living crisis, which is starting to impact consumer spend.

Some restaurants are switching to offering fixed-price set menus to cope with staff shortages and soaring costs, while others have simply been forced to close.

Businesses were disappointed at the measures announced in Chancellor Kwasi Kwarteng's mini budget last month, which notably left out business rates and VAT, while the new Energy Bill Relief Scheme is providing a discount to businesses on their bills for six months.