Brits will be treated to three bank holidays in May thanks to King Charles III’s coronation and hospitality operators will be hoping this period can spur growth following a tough few years for the sector.
A strong performance over Easter has already raised expectations for a recovery into the summer and beyond.
The four-day Easter weekend provided a boost to pubs and restaurants all over the UK, with sales over the holiday jumping 63% compared to an average weekend in 2022 – according to research from CGA.
Confidence among operators remains positive though, according to the most recent CGA’s business leaders survey.
Around 47% of hospitality bosses are confident about the next 12 months, only seven percentage points behind pre-pandemic figures.
CGA analysts believe the rise in confidence could be driven by a “survival of the fittest” attitude to the remaining operators.
“One could well argue that those left are confident because 20% of their competitors are no longer challenging,” CGA stated.
Some pubs and restaurants have begun returning to profitability, like chain Wetherspoons which reported last month being in the black for the first time since Covid.
Restaurant companies Mitchells & Butlers and Wagamama’s owner TRG are both up around 16% in the year-to-date, whilst Wetherspoons’ value has surged more than 53%.
Hospitality venues struggled during lockdown when many were forced to close or resort to takeaways only.
Since then, soaring energy costs, inflation, reduced demand, and a smaller workforce have all paid a key part in keeping the industry subdued.
Organisations have urged the government for help after the energy bill relief scheme ended.
Last month, Kate Nicholls, chief executive at UKHospitality said: “We have already seen 150 pubs lost for good so far [in 2023] and that really is the tip of the iceberg if nothing is done.
“If there is no help, hospitality will look like a shell of itself in a year’s time.”
The industry has been forced to ramp up prices to keep up with inflation and preserve existing sites.
In February, annual hospitality inflation reached 12.1% jumping from January’s 10.8% and levels not seen since the Summer of 1991 when the UK was in the midst of a recession.
Restaurants and pubs inflation was the largest driver in the rise to the annual CPIH rate in February, according to the Office for National Statistics.