Over 70% of venues to invest in refurbs despite rising costs
The survey was conducted jointly by UKHospitality, the British Beer & Pub Association, Hospitality Ulster and the British Institute of Innkeeping
Some 71% of hospitality operators are set to invest in venue refurbishments in the next year, a new survey from trade organisations has revealed.
Despite cost pressures, 95% of operators are planning to invest in customer service, 92% in staff training, all up significantly on last quarter.
The survey was conducted jointly by UKHospitality, the British Beer & Pub Association, Hospitality Ulster and the British Institute of Innkeeping.
Despite more than 33% of operators seeing an increase in revenues, 70% of venues have seen a reduction in profit, with nearly 50% of venues operating at a loss or just breaking even.
One-in-four businesses still remain completely exposed, having no cash reserves, with nearly one-in-two having six months or less and 66% of businesses now have significantly increased wage costs.
In a joint statement, the trade bodies said: “Our regular survey of our joint memberships showed the resilience of our sector, as well as an appetite to invest in teams and venues for the future. Consumers choosing to spend their disposable income in pubs, restaurants, hotels, and cafes is no surprise, as we provide a much-needed opportunity for fun, celebration and vital social connection, but in order for our members to survive and thrive, they need to be profitable.
“Their profitability has been heavily impacted by high inflation in food and drink, high energy costs, disruption from rail strikes and the impact of increased labour costs, that have had a ripple effect at every level.”
They added: “The sector is innovative, adaptable and has the potential to provide much needed growth for the economy, creating vital local employment and bolstering local supply chains, all whilst supporting essential social connection in high streets, towns and cities.
“In order for operators to invest in this potential, however, the sector also needs a fairer, modern and more proportionate tax and regulatory regime, enabling it to remain at the heart of local economies and communities across the UK.”
