UK hospitality leaders’ confidence rises to 41% in Q2

This is up by seven percentage points from Q1.

Confidence amongst Britain’s hospitality leaders rose in Q2 2025, with 41% feeling optimistic about their businesses over the next year, according to the latest Business Confidence Survey from CGA by NIQ and Sona.

This is up by seven percentage points (pp) from the previous quarter and a second successive increase.

The proportion of leaders feeling confident about the future of hospitality in general is lower at 18% but rose by three pp quarter on quarter (QoQ).

Despite the improvement, sentiment remains weak by historic standards, down 15 pp YoY and 29 pp below the levels of August 2021.

Cautious confidence has been fuelled by stable spending in pubs, bars and restaurants in 2025.

Just over half (53%) of leaders say revenue increased year on year (YoY), nearly double the 28% who say it dropped.

However, increases are largely the result of higher menu prices and new openings.

Costs remain a major pressure. April’s higher minimum wage and National Insurance increases, alongside ongoing food and drink inflation, have hit profits.

More than a third (37%) of leaders reported a YoY profit drop, whilst only 27% said they rose.

This has left 9% of leaders with no cash reserves to draw on, whilst 53% have fewer than six months of reserves.

More than four in five (84%) leaders say extra operating expenses have forced them to raise prices since April, whilst nearly half (48%) have reduced their staffing levels, 61% have cut hours available to their teams, and 34% have deferred pay increases.

Two in five (41%) have cancelled investment plans.

Smaller hospitality businesses have been particularly damaged. Just 22% of leaders of independent companies now feel optimistic about their prospects for the next year, barely half the sector-wide average of 41%.