Credit, Collections & Insolvency News
As the cost of living crisis continues to escalate, a personal insolvency specialist has issued a warning about a concerning trend of mounting debt among the hospitality workforce.
According to Creditfix, hospitality workers are grappling with unprecedented financial burdens, with an alarming average debt level of £13,151 with the industry
faces a dual challenge as operating costs soar, leading to a ripple effect of increased prices across pubs and bars.
For instance, the average cost of a pint of Guinness this St Patrick’s Day has seen an 8% rise over the last 12 months in establishments across the UK. This surge in prices has the potential to exacerbate the financial strain on consumers, resulting in reduced spending on dining and entertainment.
Businesses within the hospitality sector are also feeling the pinch, grappling with a 20% inflation rate in operating costs. As a result, many are forced to resort to zero-hour contracts, with 53% of hospitality businesses adopting this measure to offset rising expenses.
In response to these challenges, the industry is actively lobbying the government for additional financial support to alleviate the strain on businesses. UKHospitality underscores the urgency of addressing extortionate operating costs to safeguard an industry that employs over three million people and contributes over £93 billion to the UK economy annually.
Maxine McCreadie, Personal Finance Expert at Creditfix, said “During these challenging times in the hospitality sector, it’s crucial for businesses to prioritise financial stability, both for their employees and their own sustainability. By understanding the financial strain faced by staff, businesses can better support their teams and ensure operational resilience.
“Businesses can play a vital role in connecting their employees with professional financial guidance. Encouraging staff to seek support from financial experts can empower them to navigate financial challenges more effectively, ultimately contributing to their overall well-being and productivity.
“By proactively addressing financial challenges within the hospitality sector and supporting staff in managing their finances, businesses can strengthen their teams, enhance employee satisfaction, and ultimately, ensure long-term success in an ever-evolving industry landscape.”