'We need help to survive', say hospitality businesses

Emily HudsonSouth of England political editor
News imageBBC Woman with long dark hair stands in front of business front door with Mama's Kitchen sign in wood.BBC
Nelly Pang says tax rises will see her family-run Mama's Kitchen in Southampton close its restaurant next month

Owners of cafes and restaurants have been sharing their struggles at the first meeting of a new action group for hospitality.

Businesses owners in Southampton spoke about "making no profit at all" and said urgent changes were needed by government to enable them to "keep more of our takings to survive".

'Anxiety every time a bill arrives'

News imageWoman with hair tied back, hoop earrings and black rimmed glasses wearing checked jumper
Anna Copper says bills are now "anxiety inducing"

Anna Copper runs Stakks pancake house in the Marlands shopping centre in Southampton and has a second venue in Chandlers Ford.

She said the list of pressure was endless, increasing energy costs, wage costs, business rates and VAT.

"Revenue is up on last year, 10-15% up on the same time last year, but we just can't make what's coming in cover the costs," she said.

She said it was "scary" when bills come in and she'd reduced her staffing levels to make sure she could cover her wage bill.

"We want to survive, but we need help."

'The margins are too tight ... we're closing'

Nelly Pang (pictured at top) said her family's business Mama's Kitchen had been operating for six years, two years in a premises in Guildhall Square.

"We've already cut opening to Thursday to Saturday evenings only... but the margins are too tight to employ staff."

She said trying to keep variety on the menu and cover different dietary requirements, vegan, halal, gluten free, meant there was food waste which was costing them money.

"We going back to just operating a food truck for events from the end of next month," she said.

'Huge impact on employment and other industries coming'

News imageMan with glasses and beard stands in front of a bar
Mike Carter finds staff for hospitality jobs but said the industry's employment levels are dropping

Mike Carter runs Fire group, an employment agency specialising in hospitality staff.

He said tight margins are affecting employment levels with a drop in opportunities.

But he believed people were underestimating the wider impact.

"If hospitality stops making profits that affects construction, because those businesses are not refurbishing their venues.

"It affects food suppliers, logistics, tourism businesses - a much wider impact than just a cafe or restaurant," he added.

'You pay me £10 and I have to give £8 to the government'

Max Romano runs Max's Brasserie on Commercial Road, opposite the Mayflower theatre.

He said they're still busy but he's noticed people are spending a bit less.

"We're working hard to try and make some money, employ more people, look after our kids, but tax has gone up so much."

He said £8 in every £10 his business received was going to the government.

A HM Treasury spokesperson previously said: "We're protecting pubs, restaurants and cafés with the Budget's £4.3bn support package.

"This comes on top of our efforts to ease licensing to help more venues offer pavement drinks and put on one-off events, maintaining our cut to alcohol duty on draught pints, and capping Corporation Tax."