'Rampant' inflation hurting hospitality - bosses

Hospitality leaders in Guernsey said the industry was facing a series of challenges

The hospitality industry is facing a series of challenges due to cost-of-living pressures, industry leaders have said.

It comes after the closure of popular island restaurant Old Quarter, in part due to what its owner said was changing customer habits and increasing overheads.

Alan Sillett, president of the Guernsey Hospitality Association, said inflation had dealt a blow to the sector.

"It’s definitely been damaging the last two of three years with inflation pretty rampant," he said.

"There's been increases in the food product itself, increase in drink, recruitment and labour."

Guernsey Hospitality Association president Alan Sillett said inflation was "pretty rampant"

Paddy Scaly, the owner of the Old Quarter, said customer behaviour had changed with more people now working from home post-pandemic.

"Our lunch trade has gone, so we are doing half the numbers than we did before," he said.

"People would come from Jersey or the UK, for a business meeting - they'll be there until 4 to 5 in the afternoon.

"But ever since Covid... there’s no need to meet in person."

Paddy Scally, owner of the Old Quarter, said customer behaviour had changed

Mr Scally said of increasing costs: "I was paying almost double price wise for goods, but I didn’t want to cut the quality."

Experts have previously said Guernsey's rate of inflation remained "stubbornly high" after slowing to 5.3% in the year to June.