Confidence in hospitality sector climbs again
Well over a third (38%) of leaders are also very concerned by increases in the National Living Wage
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Nearly half (49%) of hospitality business leaders feel confident about the hospitality market over the next 12 months, up by four percentage points from August’s figure of 45%.
Only 5% of leaders say their business is currently at risk of failure, down from 11% last quarter.
The number feeling pessimistic about the market has dropped from 31% in August to 18% in October.
CGA claimed that 58% are optimistic about their businesses’ Christmas trading, with just 8% feeling pessimistic.
Well over a quarter (29%) of leaders said Christmas bookings are ahead of this time last year, nearly double the 15% who said reservations are down.
Business rates are the most pressing issue at the moment, with 57% of leaders very concerned about them.
Over two thirds (67%) of leaders said their business would be less stable if relief were removed.
Over 70% said a withdrawal of relief would force them to cut investment 61% would have to reduce staffing levels, 61% would raise menu prices and 45% would close sites.
Well over a third (38%) of leaders are also very concerned by increases in the National Living Wage.
Karl Chessell, CGA by NIQ’s director – hospitality operators and food, EMEA, said: “These figures are another vote of confidence in hospitality and a sign that trading conditions may start to ease as inflation comes down.
“It’s encouraging to see good levels of optimism about Christmas sales, which can make or break the year for many restaurant, pub and bar groups. Despite pressure on their spending, consumers clearly remain eager to enjoy the special experiences that hospitality provides.”
He added: “However, the sector is not out of the woods yet. Costs in food, drink, labour and energy remain exceptionally high, and as the Autumn Statement approaches there is real concern about the damage that a rise in business rates would cause. Hospitality is a vibrant industry that makes an enormous contribution to the UK economy, but any changes to rates relief and caps would jeopardise its investment and job creation and further fuel inflation.”
