(Reuters] -Two major pub chains in Britain warned on Wednesday that they would be affected by the Ukraine war and the rising cost of living. It is a grim outlook for an sector still struggling to recover from the pandemic.

The bleak view from Mitchells & Butlers and Marston’s highlights the challenges facing the hospitality sector as prices of raw materials rise and consumers limit spending due to slow wage growth and soaring inflation.

The trading environment is still difficult. Cost headwinds present a significant challenge to the industry,” Mitchells & Butlers Chief Executive Phil Urban said in a statement.

These rising costs come as the sector is still recovering from Brexit’s pandemic effects and the widespread shortage of labour.

Both Mitchells & Butlers and Marston’s posted an interim pre-tax profit compared with a year-ago loss as customers returned to pubs after COVID-19 curbs were eased.

Now, they are plotting measures to limit the impact of inflation, with Mitchells & Butlers saying it has already bought about 80% of its energy requirements for the year. A hedge of roughly 10% was also taken out by the owner of All Bar One and Sizzling Pubs as well as Toby Carvery, Vintage Inns and Toby Carvery brands.

Marston’s, however, is a small rival and stated that it had cut costs and changed its pricing strategies.

Andrew Andrea, Marston’s CEO stated: “While we recognize the difficulties that every business in hospitality faces right now, trading continues to be stable. We look forward for an uninterrupted summer.”

Rival Wetherspoon warned earlier in the month of “considerable” cost pressures.