Britain’s Hospitality Heads are on the Up … or at Least Not on the Downlock
According to the latest Business Confidence Survey, the mood in the UK hospitality scene is a bright‑sided quarter‑over‑quarter improvement. 49 % of industry big‑wigs now feel their business is a solid bet for the next year—up four points from the August figure (45 %).
That’s not the only good news. 62 % of leaders remain positive about their future prospects, holding steady in that optimistic camp.
Why the Gloomy Clouds Still Hover
- Inflation – Prices for key supplies are still climbing, and that makes the menu items a little pricier for everyone.
- Business Rates – The taxes on commercial property keep ticking up, and tablet‑tops and tyres don’t put that kind of burden lightly on the pockets.
In plain English: you’re feeling a little lighter on the shoulders, but you’re still wary of the bill on the bottom of the credit card statement.
Bottom Line
Even with the inevitable inflation storm and the ever‑looming business rates, the hospitality sector’s confidence is turning a slight smile. They’re swimming a bit more cheerfully in the future‑forecast tide, but the waves of price pressures are still there, making sure nobody forgets to bring an umbrella (and a good laugh).
Business Resilience After the Pandemic Shake‑Up
These latest figures show that most companies are finally putting their feet firmly on solid ground again.
- Risk of failure is down to just 5% of leaders, a sharp drop from 11% a quarter ago.
- The sense of doom in the market has eased measurably — from 31% pessimistic in August to only 18% in October.
Bottom line: While a handful of businesses still feel like a house of cards, the majority are gradually clawing back stability, shedding the fragile feel that COVID and the cost crisis had imposed.
Christmas trading
Holiday Buzzer‑Buzz: CEOs Feeling the Holiday Vibe
Out of every five business leaders, 58% are practically doing a little Christmas dance, brimming with optimism about the last quarter’s win‑loss bookings. Meanwhile, a small group—only 8%—are feeling a touch of holiday mood‑slick™—a sad-sock dud of pessimism.
Booking Bounce‑Backs Over the Season
- Nearly a third, 29%, say their Christmas bookings stepped ahead of what they’d seen a year ago, like a well‑timed “Santa’s magic foot!”
- Only 15% of the leaders admit the bookings have dipped, because apparently the Christmas traffic didn’t make it to the “Jingle‑Rizer.”
Business rates
The Cost Crisis: What Businesses Are Saying
According to the latest Business Confidence Survey from CGA and Fourth, the biggest worry on every business plate is business rates. A shocking 57 % of leaders are on edge, fearing that the Chancellor’s Autumn Statement could bring a rate hike.
They want change, and they’re planning to argue it hard.
Start‑to‑Finish Relief Requests
- 71 % of businesses would have to cut investment if relief vanished.
- 61 % warn about staff reductions— hard to keep the workforce happy.
- 61 % fear they’ll have to raise menu prices to survive.
- 45 % say they might have to close a site altogether.
Bottom line? All eyes are on relief. If it’s withdrawn, businesses will feel less sturdy, cheaper, and unfortunately, more likely to tighten belts or even shut down.
Other pressures
Industry Update: Hospitality Facing Rising Costs and Hopeful Outlook
In an eye‑opening survey, 38% of hotel and restaurant leaders worry that the National Living Wage is nudging up prices. Over the past year, belonging to the culinary realm, businesses have pushed wages up by an average of 10%, a move that has helped flatten the talent shortage from 11% to now 8%.
Other Cost Pressures on the Horizon
- Energy Prices – 35% of leaders say this is a major worry.
- Food & Drink Inflation – 30% feel the sting.
“These numbers are another vote of confidence in our sector,” said Karl Chessell, CGA and Director for Hospitality Operations at NIQ. “They suggest that trading conditions might ease as inflation eases. The Christmas season is a make‑or‑break moment for many pubs, restaurants and bars. Despite the price pressures, diners still crave that special dining experience.”
But: “The party isn’t over yet. Food, drink, labour, and energy costs remain sky‑high. We’re teetering on the brink of the Autumn Statement, and a rise in business rates could stoke the fires of inflation further. Hospitality is a vibrant engine of the UK economy, but any shift to rate relief or caps would threaten investment, job creation, and could kick the inflation world back into a frenzy.”
Seasonal Resilience and Tech‑Assisted Optimism
“As we get closer to the holidays, the expected traffic bump is a silver lining for operators,” added Sebastien Sepierre, managing director for EMEA at Fourth. “It’s encouraging to see a stronger business confidence compared to the previous quarter – a testament to our sector’s resilience amidst inflation, energy hikes, and high vacancy rates that test venues of every size.”
He added: “Technology now becomes essential. It helps us predict sales, manage demand, and schedule staff based on real insights. The result is a smoother, cost‑efficient operation.”
A final word: “Let’s keep leveraging these tools to stay agile in 2024 and into the future.”
Stay ahead of the curve! Subscribe now to get real‑time updates directly on your device.
