Confidence is high despite costs and staffing problems
Wednesday, August 30, 2023
Optimism within the UK hospitality industry has soared for the third quarter running, according to a new survey from CGA by NIQ and Fourth
"Leaders’ optimism levels are impressively high at such a difficult time for UK businesses and consumers," - Karl Chessell
The figures are a welcome vote of confidence in British hospitality industry and come after robust trade growth in 2023 despite pressure on disposable incomes of consumers.
More than four out of five executives (84%) said they had shown profits in the second quarter of the year and 37% had done so with a higher margin than between the same period of the previous year.
The survey also shows there is a marked surge in confidence among smaller companies.
Almost two fifths (38%) of executives of independent companies feel optimistic about the outlook for the hospitality sector, 15% more than in the previous survey.
"It's fantastic to see business confidence return to the hospitality sector in recent months, especially in the face of continuing industry challenges," - Sebastien Sepierre
However, the hospitality industry remains facing major challenges including high inflation in key sectors.
All Heads of State and Government stated that to some degree they are concerned by food and beverage inflation and over nine out of ten are concerned about energy prices and contracts (96%) and interest rates (91%);
Such inflationary pressures are impinging on company profits, the survey found.