Businesses across Devon’s hospitality sector are facing a tough year, with many owners revealing serious challenges threatening their sustainability. From pubs and hotels to cafes and holiday resorts, the summer season’s turnover has been influenced by shifting consumer behaviour, rising costs, and unpredictable weather.
One prominent concern is consumers tightening their budgets. Mike Jordan, owner of The Tavern in Barnstaple, notes a sharp shift in drinking habits: more patrons are pre-drinking at home or attending private gatherings, resulting in lower sales at venues. “We’re taking about two-thirds of the money we took last year—a third down,” Mike says. He has cut staff hours and costs where possible but fears that if the trend continues, he may have to sell or even convert the pub into flats. “It’s not what I want to do, but if the money isn’t there, there’s little point carrying on under current circumstances.”
Weather played a mixed role this summer. North Devon businesses generally benefited from sunnier spells. Michelle Hudson, manager of The View Holiday Apartments in Ilfracombe, observed a rise in last-minute bookings thanks to the improved weather, echoed by Anthony of Meraki Coffee Co. in Woolacombe who confirmed bright days directly increased foot traffic. However, for local pubs like The Thatched House Inn in Exwick, fine weather meant locals opted to beaches or gardens instead, reducing weekend patronage.
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The ongoing cost-of-living crisis compounds these difficulties. Rising energy bills, inflation in ingredients, and increased operational expenses weigh heavily on Devon’s hospitality operators. Jon Hutchings of The White Hart in Holsworthy remarked on soaring costs across everything from beer to flour. Similarly, Anthony from Meraki highlights significant price hikes in coffee, chocolate, taxes, and wages, alongside supplier challenges that have forced them to source costlier alternatives.
Holidaymakers’ preferences have evolved toward quality over quantity. Many now choose fewer but higher-value trips, focusing on memorable experiences. Paul Plummer of Compton Pool Holiday Cottages launched Devon’s tiniest pub, The Gropers Arms, to enhance guest experiences. “Families want more than just a cottage—they seek a full, memorable holiday,” he explains. Despite price increases, some venues report customers accepting premium costs in exchange for better quality, although feedback on rising prices remains mixed.
Looking ahead, Devon’s hospitality scene is cautiously optimistic. While winter months are a concern due to reduced tourism and cash flow pressures, several business owners remain hopeful. Paul Plummer looks forward to autumn’s appeal and strong bookings, while The Thatched House’s Paul Knott expresses confidence built on years of weathering previous economic storms. Nevertheless, Anthony worries about sustaining staff hours through quieter seasons—a challenge many employers share.
Adapting to change has been crucial. After a rocky start marred by negative feedback over price hikes, Meraki Coffee Co. successfully implemented customer-driven improvements, turning a low point into a highlight of 2025. Devon’s hospitality industry is gradually carving out a premium holiday identity, proud to innovate and deliver exceptional experiences all year round.