Britain’s Hospitality Forecast: A Bit of Worry Amid a Glimmer
Even with a few bright spots on spending and some price relief out there, the hospitality chiefs in the UK keep their fingers crossed but not exactly jumping for joy. According to the latest Business Confidence Survey from CGA by NIQ, the mood hasn’t exactly exploded.
Key Numbers That Tell the Story
- Industry Outlook – Only 34% of leaders feel confident about the market in the next 12 months, a 7‑point drop from February’s 41%.
- Business‑Specific Outlook – Optimism about their own company’s prospects has slipped to 53%, down 4 points from the 57% in February.
- Trend – This marks the second consecutive quarter where confidence has fallen after a solid four‑quarter streak of gains.
What’s the Real Takeaway?
While the idea of consumers dipping back into the restaurants and pubs feels encouraging, the leaders in the industry aren’t exactly throwing a party. With spending easing just enough and a few costs dropping, there’s some optimism. But the dip in confidence shows that the big picture still feels a bit shaky. It seems the hospitality world is walking a tightrope: hopeful yet cautious, looking forward to brighter days but ready for the bumps along the way.
Revenue and average spend increase
Business Confidence Survey: Why We’re Not Totally Nervous
Hello, folks! The latest Business Confidence Survey paints a picture of cautious optimism for the rest of 2024. Let’s break down the key takeaways in plain, everyday language.
Revenue’s Trending Upwards – Good News?
- ⏫ 65% of business leaders reported that revenue in Q1 2024 beat the first three months of 2023.
- Only 14% felt they were going down the drain.
So, if you’re wondering whether your business is on the right track, the numbers lean toward “positive vibes.” Just remember 35% still have doubts—stay sharp folks.
How Customers Are Spending (and Not)
- 39% of leaders say customers are spending more per visit in the last six months.
- Meanwhile, only 24% saw a boost in footfall—so people are still walking slower than last year.
- 66% noted that drink orders are down, implying that while folks are ordering less, they’re ordering pricier options.
This means most patrons are squeezing more value out of each trip but not really making extra stops. It’s a trend toward quality over quantity—coffee with extra shots versus a double espresso, anyone?
The Bottom Line
Overall, the survey tells us the business world isn’t in a panic mode. Revenue is growing for the majority, and consumers are spending a bit more on each visit. But the “eat less, drink more” trend hints that while people are cutting back on quantity, they’re still willing to pay for a premium experience.
Let’s keep an eye on these indicators, tweak our strategies, and enjoy the ride—because 2024 is shaping up to be an interesting journey!
Some costs ease, others still high
Wage Wage, Wage … and Still Living the Business Dream
Hey there, business leaders! 12 months of price hikes, pay‑puzzles, and a few bright rays of hope have shaped the latest Business Confidence Survey. Grab a coffee, and let’s dive into what the numbers are really saying.
Wage Rush: The Good, the Rough, and the Record‑Low Vacancies
- Wages boomed 7.9% from Feb ’23 to Feb ’24.
- They popped back up another 8.9% in April after that National Living Wage lift.
- Despite the spike, firms now show 6% vacancies—down from 10% in February.
So, yes, the cost of labor is a big headache, but paying more is actually squeezing out the hiring ghost. What a paradox!
Energy and Food: Now That’s a Tightrope
- Energy cost worries? Gone to 38% from 9% fraction. A crowd‑pleasing drop.
- Food & beverage cost hikes fell to 31% from 50%. A bit easier to manage.
- Prices stay high, but the good news is that the “financial squeeze” is easing a bit.
Growth on The Horizon?
According to CGA’s RSM Hospitality Business Tracker:
- Managed pizza joints, pubs, and bars logged a 5.2% like‑for‑like sales jump in March.
- Consumers feel a tad more confident spending, according to the CGA Cost of Living Pulse.
In short, people are still trying to enjoy a drink, but the barates are brewh? I mean, they’re easing.
Investing Ahead: 51% Are Ups and 20% Are Down
Half of the leaders checked their spreadsheets and decided “let’s fire up that capital engine.” Meanwhile, a small 20% are holding back. The dominant narrative? An enthusiasm for tomorrow.
From the Desk of Karl Chessell
“After that sweet Christmas rush, it’s nice to see revenue and spending confidence moving in the right direction. FYI, some cost spikes still loom. But the emerging optimism hints that trading will pick up throughout 2024. “
Time to keep your bellies full—both with business funds and tasty food!
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