Business

‘Plan B’ to add additional pressure to hospitality sector, CGA warns

A third of business leaders (33%) stated that they were making a lower profit than they were before Covid-19, while 13% are only breaking even and 8% making a loss

The new ‘Plan B’ restrictions imposed by the government are likely to hit consumer spending over the festive period and “pile additional operational pressures on businesses”, according to the latest Business Confidence Survey from CGA and Fourth.

Prior to the government’s Plan B announcement, some two in three (66%) hospitality leaders expressed their optimism about the next 12 months for their business.

However, a third of business leaders (33%) stated that they were making a lower profit than they were before Covid-19, while 13% are only breaking even and 8% making a loss.

Karl Chessell, CGA’s director – hospitality operators and food, EMEA, said: “The ‘Plan B’ restrictions are denting confidence at the worst possible time and comes on top of a host of challenges around staffing, supply and rising costs.

“It is a reminder that hospitality is not out of the woods yet. Many businesses remain extremely vulnerable and will need sustained support from the government in the months ahead.”

Sebastien Sepierre, managing director – EMEA, Fourth, added: “With many businesses suffering supply chain and labour issues, the prospect of mass cancellations due to a consumer confidence hit is yet another challenge the industry can ill afford.

“It’s absolutely vital that suitable support is re-introduced to protect businesses and livelihoods at what should be the busiest trading period of the year.”

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