Hospitality sector continues to face challenges amid rising costs

The UK's hospitality sector leaders remain guarded in their outlook for the future, facing ongoing challenges related to cost pressures that are a major concern, as highlighted by the latest results from the Business Confidence Survey carried out by CGA and NIQ.

Confidence Takes A Hit As Inflation Persists

According to the survey conducted by CGA and NIQ, there has been a significant decrease in the level of confidence expressed by Britain's hospitality leaders regarding their business prospects over the next 12 months.

This decrease in confidence can be primarily linked to the ongoing difficulties caused by elevated inflation rates, leading to considerable hikes in wages and food expenses that are affecting the sector's overall outlook.

Labour And Food Costs Continue To Pose Challenges

of business leaders have faced substantial rises in wages during the past year.

A significant proportion of business leaders are responding to current challenges by shortening operating hours in some areas, despite a low percentage of them believing their company faces an immediate threat of insolvency.

Signs Of Optimism Amidst Challenges

While the industry still faces difficulties, there are emerging indications that confidence is growing as inflation slows down in certain regions.

'After more than four years of disruption from COVID and inflation, hospitality's leaders are understandably circumspect about the future.'

Karl Chessell

Furthermore, the survey emphasizes the necessity of support from the new Labour government, particularly with regard to implementing tax reforms and revising business rates that have been a significant concern for hospitality leaders.