'High costs and low bookings will end my business'

Tony Davies said his restaurant in FarGo Village used to be "six months fully booked"

The owner of a small restaurant has said he may have to close his doors as he was losing money due to higher costs and fewer bookings.

Tony Davies, chef patron at Gourmet Food Kitchen at FarGo Village in Coventry, said the past year had been "really difficult" for his business.

He said it had changed from being "six months fully booked" on Thursdays, Fridays and Saturdays to being unable to fill bookings each week.

The government said it understood the importance of hospitality and was supporting the industry with business rates relief.

It's also said it intended to bring in permanently lower tax rates for retail, hospitality, and leisure properties from next year.

Mr Davies said the higher costs were killing his business.

"I thought I had a really successful business and now I'm thinking, am I going to survive?" he said.

He gave the rising cost of butter as an example, which he said had "probably more than doubled in price the past two years".

"But I can't put my prices up by twice as much, I'd never get anybody then."

Businesses within the hospitality sector have blamed rising food prices and fewer sales, as well as changes to bring in higher minimum wage and national insurance contributions.

'We've always suffered'

Mr Davies said there had been a few times where he had to close his restaurant for the night due to a lack of customers and he would have to shut if it continued.

"I'd just have to close the business. At the moment I'm getting by, but just getting by. As soon as it starts costing me money that's it, we'll be closed," he explained.

"Fingers crossed it is going to pick up, but I can't see it happening very soon. I'm just worried."

Tony Sophoclides from UK Hospitality, which represents the hospitality sector, said some businesses were doing better than others but the industry was reaching "quite a low".

He said the sector had faced a "slow incremental increase" on many costs.

"We've always suffered," he said, blaming a disproportionate impact from business rates "because of the way that those are structured".

"They are being reformed now but it can't come soon enough," he added.