Haysmacintyre reveals continued drop in hospitality confidence

Business confidence and outlook within the hospitality sector has reportedly plummeted among hospitality traders, according to new research targeting pubs, restaurants, and hotels by accountancy firm, Haysmacintyre. 

In light of the current economic crisis, the survey revealed that only 19% of operators are optimistic about the industry’s prospects. This figure is down from 26% in the firm’s survey from May 2022. 

Hotels and restaurants report that 25% and 27% respectively lack confidence, while confidence is lowest among pub and bar operators when it comes to prospects of their business, with 55% either not confident or not at all confident about their business’ future. 

The survey also revealed the challenges that are currently posing the “greatest” threat to hospitality businesses, with 40% of operators reporting energy costs as their most significant challenge for the next six months, whereas 28% identified staff recruitment as their greatest hurdle to overcome. 

In addition, 81% of survey respondents revealed having introduced price increases to combat rising costs. Other strategies to alleviate pressure include reducing the services offered, including menu variety (37%), reducing business opening hours (35%), and a greater use of technology, such as mobile payments or ordering systems (23%). 

Gareth Ogden, partner in the hospitality team at Haysmacintyre, said: “Unsurprisingly, there has been a noticeable drop in business confidence and positive outlook since our survey in the Spring. To say it has been a turbulent year for the hospitality industry is an understatement; businesses building back confidence post Covid-19 have only been hit with greater economic turmoil. 

“The sector is typically resilient in the face of adversity, yet the most difficult period the sector has faced is taking its toll on hospitality’s capacity for optimism. The winter ahead is set to be wrought with challenges, including energy shortages and inflation, as well as uncertainty over government support.”

* This article was originally published here