Birmingham’s hospitality sector is grappling with a challenging trading environment as economic pressures continue to mount. The recently published West Midlands Night-Time Economy Commission report outlines 25 recommendations designed to enhance the vibrancy, accessibility, and safety of the region’s night-time economy.
The sector has been hit hard by a combination of factors, including the lasting impacts of Covid-19, the cost of living crisis, high VAT, and rising business rates. Hospitality business owners Henry Poultney, of Grace & James in Kings Heath, and Jack Brabant, who runs Herbert’s Yard in Longbridge and co-founded Digbeth Dining Club, emphasize the importance of being actively involved in shaping solutions.
Henry Poultney, who has opened several independent hospitality venues in South Birmingham, highlights the sector-wide financial strain. “The environment right now is incredibly tough for hospitality businesses,” he says. “Small independent venues are especially feeling the pinch from rising costs like energy, supply chain disruptions, business rates, and national insurance contributions. Many of us have reached a price ceiling with customers, making it impossible to pass on increasing expenses. Cash flow pressures are relentless.”
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Jack Brabant reflects on his 15 years of experience running large-scale street food events in Digbeth. “We’ve seen costs escalate significantly. It’s vital to be part of discussions and decision-making processes if we want meaningful change,” he states. “We’re passionate about improving the night-time economy and are working closely with politicians and the Combined Authority to find innovative solutions. Despite the tough times brought on by Covid and economic challenges, our combined expertise gives us hope that positive changes are possible.”
Both leaders stress that healthy, thriving businesses are essential to the sector’s future. Without a solid foundation of successful independent venues and operators, the overall night-time economy risks decline.
The West Midlands Night-Time Economy Commission’s report has been welcomed as a crucial step towards tackling these challenges, with stakeholders committed to implementing its recommendations and supporting the region’s hospitality industry through these turbulent times.