Over half of hospitality leaders optimistic about next 12 months
Leaders in the independent market do not share this optimism with only 23% having optimism for the sector in general and 33% in their own business
Over half (54%) of business leaders at Britain’s top hospitality groups are optimistic about the next 12 months according to a survey from CGA and Fourth.
This is an increase of 7 percentage points from the last survey in January and more than double the 22% of people who feel pessimistic about their business’ prospects.
The number of leaders feeling confident about the eating and drinking out market in general has risen by ten percentage points to 40%.
Leaders in the independent market do not share this optimism with only 23% having optimism for the sector in general and 33% in their own business.
All figures remain below the levels seen before the pandemic, and 25% of leaders say their business operated at a loss in the first quarter of 2023 while 32% say their profitability has been below last year’s levels.
Karl Chessell, CGA by NIQ’s director – hospitality operators and food, EMEA, said: “These figures highlight the impressive resilience of pubs, bars, and restaurants despite the enormous challenges of COVID-19 and the cost-of-living crisis. All our research shows consumers remain eager to eat and drink out when they can, and business leaders are rightly confident about the long-term outlook for hospitality.
“Nevertheless, the relentless rise in bills for businesses and consumers alike leaves many firms and jobs extremely vulnerable. Until inflation finally eases, conditions will remain very difficult, and hospitality deserves targeted government support to mitigate costs.”
Sebastien Sepierre, managing director – EMEA, Fourth, added: “It’s encouraging to see business confidence rise across the sector in recent months, despite soaring product costs, labour shortages, and sky-high energy bills continuing to ravage the sector.
“It’s crucial that businesses are getting access to as much support as they can get and are utilising the right tools and technology to help them operate as efficiently as possible, giving sector businesses full control and oversight of their spending across labour and supply.”
