A poll conducted by Nielsen IQ’s CGA consumer intelligence wing shows that just 49% of hospitality bosses feel confident about the prospects of their businesses over the next 12 months.
This is down from 54% in a similar poll conducted in May and represents the third quarter-on-quarter drop in confidence.
“Hospitality’s confidence has been sapped by several years of high inflation, and challenges in several key areas continue - especially labour, where nearly three in five (58%) leaders have experienced significant increases in wage costs in the last 12 months,” said CGA.
“Three quarters (75%) have seen at least some increases in food costs.
“These pressures, alongside a drop in footfall as some consumers reduce their visits to pubs, bars and restaurants, have led a third (33%) of leaders to reduce trading hours in their estates.”
On a positive note, half of polled bosses have seen a reduction in their energy bills and more than half have seen no increases to their rent.
“Hospitality’s leaders are understandably circumspect about the future,” said Karl Chesell, CGA by NIQ’s director.
“With pay and food costs still rising and many consumers still feeling the pinch on spending, it’s not surprising that there has been no post-election bounce in optimism.
“However, long-overdue respite in energy and rents will have loosened the squeeze on operators’ margins, and we can be optimistic that an easing of consumers’ costs will free up more spending in the final few months of 2024.”