With cafes and restaurants facing soaring costs, some are warning they will have to increase prices.
With hospitality businesses facing soaring costs, some are warning that a rise in VAT from Friday will force them to increase prices for customers.
"As companies try and emerge from Covid a lot of them will just fall by the wayside because of this cocktail of cost increases."Mr Watson says cost pressures mean his pub chain has already increased drink prices by 4% earlier this month and from 1 April it plans to increase food prices by an average of 7.5% to reflect the increase in VAT.
"But at the same time with all these additional costs we've got to try and claw back some of the lost revenue by price increases." Heidi bakery chain, which has six stores in south-east England, is also planning to increase prices as a result of the VAT increase and has recently put up signs in its shops explaining the move to customers.
With the public also facing pressure on their budgets from the rising cost of living, Mr Shanks says his company will be watching closely to see how customers respond to the price rises.
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