Hospitality leaders' confidence drops to 41%
This is a dip of eight percentage points from 49% in August.
Only 41% of Britain’s hospitality leaders feel confident about prospects for their business over the next 12 months, a dip of eight percentage points (pp) from 49% in August, according to CGA by NIQ’s Business Confidence Survey.
The report noted that this is the fourth quarter-on-quarter (QoQ) decline in a row, and optimism is now at its lowest point since October 2022, when inflation was hitting 40-year highs.
Meanwhile, only 20% of leaders feel optimistic about the future of hospitality in general over the next year, a near-halving from 36% three months ago.
Close to half (46%) say they are pessimistic about the next 12 months, which is double the number (21%) in August.
The report also noted that the growing negative segment follows tough trading conditions in the third quarter of this year, with the proportion of leaders reporting a year-on-year (YoY) increase in revenue having fallen from 64% to 41% due to many consumers cutting their spending.
Two-thirds (65%) said their guest footfall has decreased YoY, whilst 41% have seen total spend drop.
Moreover, 54% said that visitors are buying fewer drinks, with only 10% observing an increase in purchases.
“The Budget has fallen some way short of the support that business leaders were hoping for, and the increase in National Insurance contributions will put even more operators at risk of failure,” said Karl Chessell, director of hospitality operators and food, EMEA, at GGA by NIQ.
“Christmas trading may bring some relief, but longer-term optimism is likely to stay very restrained well into 2025,” he added.
