According to the latest business trust survey from NIQ and SONA, only 34% of UK hospitality leaders who feel confident in their business outlook for next year are confident in their business outlook for next year, according to CGA. Trust in the hospitality sector as a whole is even lower at just 15%.
The rising costs had a major impact on the industry, particularly the rise in the national insurance and minimum wage. Four in five leaders report wage bills that are significantly higher than last year, with 91% citing increased employment costs as a major concern. Additional pressures include rising business rates (73% stakeholders) and food and drink inflation (61% relationship).
Financial tensions are evident in cash flow, with nearly 60% of leaders having reserves of less than six months, with one in ten people considering businesses that are at risk of breakdowns within 12 months. To manage costs, 65% reduced staff or reduced hours, 40% increased wages, and 29% reduced employee benefits and training spending.
Hospitality operator and food director Karl Chessell said: EMEA of CGA by NIQ: It deserves much better support than you currently get. ”
“We’ve seen a lot of effort into hospitality,” said Paul Watson, Sona’s Vice President of Hospitality. “The hospitality industry continues to withstand a storm of economic challenges, keep growth down and emit productivity. From a labor standpoint, we ensure that all ROTAs and schedules are fully optimized more than ever.
“Now is not the time to survive the storm. It’s time to ensure that businesses operate as efficiently as possible to help them get out of trouble.”
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