Hospitality real terms sales behind pre-pandemic levels

Hospitality turnover for the year ended September 2022 increased 1.3% to £135bn but this is a real terms decrease compared with 2019, according to data from CGA.

Inflationary pressures have meant that even though a 1.3% increase is the first time a full-year figure has been above pre-pandemic levels, it represents a real terms decrease in sales.

Rising food, energy and labour costs are said to be behind the inflation, putting the squeeze on those in hospitality.

UKHospitality CEO Kate Nicholls said: “These figures are a stark reminder of the challenge facing our sector. The sector’s sales finally rising above pre-pandemic levels should be a cause for celebration but the scale of inflation means it’s actually a warning sign of just how perilous a position hospitality is in.

“Catching up to these levels of inflation will be almost impossible for businesses, as they grapple with rising costs and dampening consumer confidence as a result of the cost-of-living crisis.”

Nicholls added: “On a positive note, the data does show that hospitality is capable of returning to pre-pandemic levels, even in these challenging circumstances, and that the nation still hugely values the role it plays in our culture and society.

“That demonstrates the importance of hospitality maintaining its inclusion in the Government’s energy relief package post-April to help it weather this storm, in order to deliver the economic growth I’m confident it can achieve.”