Chloe Claxton
Willow Gwyn-Williams says slow January periods after Christmas rush can be ‘difficult to deal with’
“I’ve worked in hospitality since I was 15, and this is probably the slowest January I’ve ever worked,” says Willow Gwyn-Williams, 23, a pub manager in Chelmsford .
She believes the cost of living crisis is to blame for the drop in bookings where she works at the William Boosey in Hatfield Peverel.
“People just don’t have the money to go out and do anything,” she says.
Videos of eerily empty bars and restaurants are trending on TikTok, with staff posting videos under the hashtag January in Hospitality.
Some posts have tens of thousands of likes, showing staff finding creative ways to stay busy, including perfecting latte art or making pint glasses sparkling clean.
Willow says the quieter period means fewer shifts, especially for part-time employees, “because we just don’t have the numbers to justify bringing additional people to work.”
“The mood in January is a little gloomy,” she says.
While a January trading lull is normal, there are concerns that restaurants and bars will continue to be quieter than usual all year round.
“Quietest January”
The industry warns that increases in employer National Insurance contributions and the minimum wage, announced in the Budget and due to start in April, will mean measures will remain strict beyond January.
Kate Nicholls, chief executive of trade body UK Hospitality, says the government needs to “urgently rethink” the changes – otherwise the public will face price rises of around 6-8%.
According to her, 80% of companies in the sector would have to reduce their workforce and some could be forced to close their doors.
Louise Maclean is managing director of Signature Group, which owns more than 20 bars, restaurants and nightclubs across Scotland, employing around 700 people.
“Everywhere you have to get the situation under control,” she told the BBC’s Today programme. “We are very worried about what happens on April 1.
“We have to pass on the price increase to the consumer and make sure that sales don’t go down… it’s a very big gamble. But that’s what we’re looking at.
“The whole picture in 2025 is worrying and the phrase we use is ‘surviving ’25’.”
Sonya Johnson
Sonia Johnson says upcoming cost hike will affect her bakery
Sonia Johnson owns Mamars bakery in Warrington and says the minimum wage increase will make her biggest cost, staff, “pretty high”.
Additionally, it says its suppliers have indicated they will increase their prices in the coming months.
She says luxury items, like her artisan cheese, didn’t sell as well over Christmas because people tightened their purses, and she will have to raise prices to cover her costs.
‘Nervous’
Mohammed Sarnwal opened The Farmhouse restaurant in Coventry in 2008 and focuses on local, farm-to-table ingredients.
It says future cost increases “will undoubtedly put pressure on margins” and that its menu prices could rise “so we can survive.”
Mohammed Sarnwal
Mohammed Sarnwal explores new sources of income for his restaurant to “survive” until 2025
“To be honest: we’re nervous,” he says. “It’s quite worrying. I have never seen a situation like this in my 18 years of career in the hotel industry.”
He says the government is “doing itself a disservice: if it wants to destroy the hotel industry, it’s taking the right path.”
A government spokesperson said it was “supporting” hospitality by scrapping penny alcohol duty on draft pints from February and giving some restaurants, pubs and bars relief 40% of professional rates from April.
He added that small businesses will see either a reduction or no change in their NICs (national insurance contributions) from April by “more than doubling the Employment Allowance”, which reduces the amount they a small business must pay in NIC for its staff.
Along with empty tables, chalk signs, and deal emails offering deep discounts, it’s another sign of how desperate venues are to get people through the doors.
The number of discounts increased by 25% in 2024 and discounts were larger, says Maria Vanifatova of restaurant industry analytics company Meaningful Vision.
This year, some food delivery services are even offering up to 35% off, she says.
Despite this, consumers plan to spend less on hospitality in the first three months of 2025 than last year, according to a Deloitte survey of 3,000 people shared exclusively with the BBC.
Céline Fenech, head of consumer research at Deloitte, added that any recovery in 2025 would depend on the falling cost of essential goods, such as food and energy.
However, she adds: “Beyond that, we should start to see more consumers spending on non-essential things like socializing and going out to pubs and restaurants,” saying a higher minimum wage should give people more purchasing power.