Sector recovery slower than predicted

Expectations of a swift sector recovery following the Covid-19 pandemic have been dashed, following the reveal of the latest Future Shock report from UKHospitality and CGA.

One in seven hospitality jobs are now unfilled, which is impeding business by 16% of revenues.

According to the report, nearly half (45%) of businesses have reduced trading hours and a third have had to close for a least a day. This is despite 77% of operators increasing pay to retain and attract staff, resulting in an 11% increase in average pay levels for hospitality teams over the last year.

This rise in labour costs is just one of the cost price pressures affecting businesses in the sector, with 93% of hospitality operators reporting higher energy costs. At the same time, year-on-year inflation was running at 10% in the first quarter of 2022, while four in five (83%) business leaders in the sector reported being concerned about ongoing foodservice price rises.

On a more positive note, like-for-like sales in the sector are back to 2019 levels, buoyed by takeaway and delivery sales which are up 107% in May 2022 compared to May 2019, and there’s been a 1% net increase in the number of licensed premises in the UK between December 2021 and March 2022. 

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