Hospitality Heads Feel the Pressure—And Look for a Hint of Sunshine
What’s the headline? Hospitality bosses in Britain are keeping a wary eye on the road ahead. The latest CGA by NIQ Business Confidence Survey shows that just under half (49 %) feel hopeful about their own future, down 4 percentage points from last month and falling for the third straight quarter.
General Optimism: Still a Long Way to Go
Only 36 % of leaders think the wider hospitality scene will shine brighter in the next year. That’s a +2 pp beat from last month, but 9 pp shy of the August 2023 level.
Why the Caution?
- Labour costs are the biggest headache: 58 % reported steep wage hikes in the past year.
- Food prices have spiked too—75 % saw at least a rise.
- Footfall has dipped as diners tighten their pockets, making 33 % of operators cut back on hours.
Signs of a Turnaround
Hope flickers where inflation finally loosens: 50 % saw lower energy bills, and 56 % didn’t face further rent hikes.
Even though the mood’s guarded, a mere 9 % think their business might fail next year, and the share trading at a loss fell to 9 %—a –5 pp drop from last year.
Growth Memories Amid the Challenges
Other research reveals solid year‑on‑year sales growth for managed groups and only a modest rise in outlet numbers—so there’s still some business breathing room.
What Leaders Want from the New Government
- Business rates reform tops the list, with 88 % saying it’s a priority.
- VAT cuts come next (67 %).
- And a more sustainable rise in the National Living Wage is a 52 % concern.
These align with two of Labour’s pledges: revamping rates and swapping the apprenticeship levy for a growth‑and‑skills levy.
Chairman’s Take‑away
Karl Chessell, CGA by NIQ’s director for hospitality operators and food in EMEA, summed it up: “After four years of COVID and inflation chaos, it’s no shock that leaders are cautious. Rising wages and food costs, plus back‑sliding consumer spending—yeah, the sky’s still a bit cloudy. But the recent easing on energy and rents gives operators a breather, and we can’t ignore the possibility that happier consumers will spend more later in 2024. Confidence will stay tight for now, but with proper policy backing, hospitality can power the economy and create jobs.”
For real‑time updates on this topic, subscribe to get notifications straight to your device.
