Over 60% of business leaders optimistic about business prospects
Despite this optimism 96% of the people surveyed are concerned about energy prices and contracts while 91% are concerned by interest rates
New data from CGA Strategy has found that 62% of business leaders feel optimistic about prospects for their business over the next 12 months, an 8% increase from the last survey in May.
Alongside this 45% of leaders are optimistic about the hospitality industry in general, an increase of 5% compared with the last survey.
More than four in five (84%) leaders said they operated at a profit in the second quarter of the year, and 37% did so at a higher margin than in the same period last year.
Moreover, 38% of leaders of independent operators now feel optimistic about prospects for hospitality, an increase of 15% from the last survey.
Despite this optimism 96% of the people surveyed are concerned about energy prices and contracts while 91% are concerned by interest rates.
Inflationary pressures are shown by the fact 67% of leaders say their year-on-year sales growth is less than or equal to their cost increases, while 11% say their business remains at risk of failing.
Karl Chessell, CGA by NIQ’s director, hospitality operators and food, EMEA, said: “Leaders’ optimism levels are impressively high at such a difficult time for UK businesses and consumers. It’s encouraging to see businesses of all sizes looking to the future with such confidence, and with strong underlying demand for pubs, bars and restaurants the outlook is good.
“However, ongoing high inflation and staffing issues mean trading conditions will remain challenging until at least the end of the year. There is no room for complacency, and operators will have to work very hard to mitigate costs and protect sales over the rest of 2023.”
