Why the heat hits small businesses the hardest (and what you can do to prep for next summer)

Heat isn’t just an inconvenience – it can also be a cash drain, with new Barclays research finding that a quarter of small businesses lost productivity this summer because of the hot weather.

While large companies have the resources to kit themselves out with air conditioning units, small businesses like cafes, workshops, or compact offices have nowhere to hide from the heat. As a result, they’re left dealing with quieter footfall, queasy staff members, and concentration that trails off during the hottest hours. 

With scorching heatwaves expected to become the norm rather than an exception, we explain how smaller businesses can prepare for next summer without burning through their budget.

Productivity dropped for over a quarter of small businesses this summer

The UK endured a series of heatwaves this summer, with the mercury hitting 38C in parts of London in August. Aside from sleepless nights and scorched green spaces, the extreme heat also majorly dented small business productivity, new research from Barclays finds.

The survey, which polled 1,000 businesses and 2,000 consumers in late July, found that over a quarter of small businesses lost productivity this summer, with dizzying heat impacting staff concentration levels, prompting regular breaks, and pushing core activities outside of work hours to dodge the worst of the heat. 

Economists increasingly accept that heat is a drag on productivity, with Robert Marks, lead climate economist at Oxford Economics, warning that temperatures in the high 30s and low 40s would “likely lead to substantial productivity losses” across sectors including construction, retail, and hospitality.

But worker behaviour isn’t the only way extreme heat hits the bottom line of businesses. Warm weather also reshapes customer behaviour, with Barclays’s research finding that consumers avoid shopping in-person when temperatures hit above 25.1°C, unless it’s for drinks, cooling products or for a trip to an outdoor venue. 

This all lands the hardest on small businesses. Unlike larger firms, which can fall back on air-conditioned spaces and flexible working policies, small businesses have far less room to adapt to rising temperatures. Without that safety net, many business owners are taking things into their own hands.

Businesses respond with makeshift measures, but do they go far enough?

Small businesses have been forced to adapt to the relentless heat quickly. Barclays research shows 28% of businesses introduced wellbeing measures, 23% now offer flexible or remote working options when temperatures surge, and 21% shifted their core working hours to avoid the worst of the afternoon sun.

When temperatures were at their peak, many had to pause operations completely, including Toad Bakery in Camberwell, which closed its doors for a day in June as kitchen temperatures climbed to levels unsafe for staff. 

While these actions offer short-term relief, they’re designed to get through a hot week, not prepare for a hotter future – and the future is arriving faster than many business experts. The Met Office projects Britain will see four heatwaves a year within 50 years, as well as an increase in the number of days over 25 degrees in the shorter term. 

The message for small businesses is clear. Heat is becoming a permanent fixture for businesses in the UK, and those who plan for it now will be in a much stronger position once the thermometer strikes again. Thankfully, adopting doesn’t need to break the bank; it just requires a little foresight and a handful of practical changes.