Hospitality businesses are facing their greatest challenges yet
The proportion of leaders feeling confident about prospects for their own business over the next 12 months is higher at 29%—reflecting the greater resilience of multi-site operators than independents, who have borne the brunt of closures in recent months. However, this number has also dipped, from 53% in the last Business Confidence Survey.
Research from CGA by NielsenIQ and Fourth reveals highlights the escalating costs facing businesses at the moment, with 86% of leaders reporting significant inflation in the prices of both energy and food. Challenges have been deepened by a chronic shortage of staff in hospitality, and 11% of roles are currently vacant.
While four in five (80%) leaders say their business is still operating at a profit, more than half (53%) report margins lower than they were before the COVID-19 pandemic. One in eight (13%) expects their business to be either running at a loss or unviable by the end of 2022.
Karl Chessell, CGA’s director - hospitality operators and food, EMEA, said: “Hospitality businesses have shown remarkable resilience since the start of the pandemic, but these figures show they are facing their greatest challenges yet. With no sign of relief on inflationary pressures for firms and consumers alike, sales and margins will be under severe strain and thousands of companies are now vulnerable. Political upheaval and market shocks have only made things worse, and urgent and targeted government support is needed to sustain the sector through this very difficult period.”
Read the full story and to download the report here.