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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Mohamed DaboThu, Sep 18, 2025, 10:31 AM 2 min readThe UK hotel and hospitality sector is feeling the strain from steadily increasing food and drink costs. In August 2025, food and non-alcoholic beverage prices rose by 5.1%, the fifth consecutive monthly increase and the highest level since January 2024.These rising costs are placing significant pressure on hotel operators, forcing them to reconsider pricing, menu offerings, and operational strategies.Several key factors are contributing to higher costs in the hospitality sector:Supplier price increases: The average cost of goods sold (COGS) has risen by 10% compared to 2019, with some hotels seeing food bill increases of up to 40%.Supply chain disruptions: Extreme weather, geopolitical tensions, and transport delays have made sourcing ingredients more expensive and less predictable.Energy and operational costs: Rising energy prices have impacted food production, storage, and overall operational expenses.Regulatory changes: Environmental regulations and new taxation measures have further pushed costs up for suppliers, with the burden passing down the chain to hotels.The rising prices are having wide-reaching effects on the hospitality industry:Profit margin pressure: Food and drink inflation is outpacing overall UK inflation, squeezing profit margins and making cost management more challenging.Menu adjustments: Hotels are revising menus to manage expenses, either by increasing prices, offering smaller portions, or using more cost-effective ingredients.Operational challenges: Some hotels may reduce staff hours or adjust services to remain financially viable.Customer impact: Frequent price increases risk affecting customer satisfaction and loyalty, as guests become more price conscious.Hotels and restaurants are exploring several approaches to cope with these challenges:Supplier partnerships: Long-term agreements can stabilise prices and ensure a reliable supply of essential ingredients.Menu optimisation: Focusing on high-margin items and reviewing popular offerings helps balance profitability and customer appeal.Efficiency measures: Reducing food waste, improving energy efficiency, and streamlining operations can help offset rising costs.Clear customer communication: Transparently explaining price changes can maintain trust and understanding among guests.As food and drink prices continue to rise, UK hotels must adapt strategically to safeguard profits while maintaining a positive guest experience.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,664.05 +32.09 (+0.48%)Dow 3046,337.43 +195.01 (+0.42%)Nasdaq22,593.34 +122.61 (+0.55%)Russell 20002,450.85 -16.85 (-0.68%)VIX15.63 -0.07 (-0.45%)Gold3,718.20 +39.90 (+1.08%)PortfolioSign in to access your portfolioSign inTop gainersBHF Brighthouse Financial, Inc. 58.10 +12.84 (+28.37%)QUBT Quantum Computing Inc. 23.23 +4.88 (+26.59%)OKLO Oklo Inc. 133.14 +28.16 (+26.83%)SMR NuScale Power Corporation 46.65 +8.53 (+22.38%)DGNX Diginex Limited 13.27 +1.99 (+17.64%)Top losersVOR Vor Biopharma Inc. 25.60 -4.80 (-15.79%)DXCM DexCom, Inc. 67.35 -8.43 (-11.12%)HESM Hess Midstream LP 35.63 -3.85 (-9.76%)QMMM QMMM Holdings Limited 80.01 -9.01 (-10.12%)CART Maplebear Inc. 41.99 -3.42 (-7.52%)Most activeOPEN Opendoor Technologies Inc. 9.67 -0.27 (-2.73%)INTC Intel Corporation 29.60 -0.97 (-3.17%)SNAP Snap Inc. 8.08 -0.36 (-4.27%)NVDA NVIDIA Corporation 176.26 +0.02 (+0.01%)BBAI BigBear.ai Holdings, Inc. 6.83 +0.54 (+8.68%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersAAPL Apple Inc. 245.52 +7.64 (+3.21%)AGMH AGM Group Holdings Inc. 10.61 +8.38 (+375.99%)QUBT Quantum Computing Inc. 23.15 +4.80 (+26.13%)SMR NuScale Power Corporation 46.85 +8.73 (+22.89%)OKLO Oklo Inc. 133.69 +28.72 (+27.36%)Top economic events