Sector turnover still down on pre-pandemic
Turnover in the last year was 14.7% down compared to pre-pandemic levels
Hospitality turnover in the last year was 14.7% down compared to pre-pandemic levels, when accounting for inflation.
The latest findings come from the UKHospitality Quarterly Tracker, in association with CGA. The revenue generated in the last 12 months was 4.1% above what was seen pre-pandemic, demonstrating strong consumer demand. However, this is still falling significantly below the like-for-like sales required to keep up with inflation.
The tracker also shows that the sector’s turnover contracted by 0.3% in Q1 this year, compared to Q1 in 2022.
"Unfortunately, these figures no longer come as a surprise and simply reinforce the chronic nature of the pressure hospitality is under due to inflation," says UKHospitality chief executive Kate Nicholls. "Despite consumer demand remaining strong and revenue being up on 2019, businesses are simply nowhere near able to keep up with the cost pressures they’re facing across energy, food and drink."
Nicholls says that fears that this endless pressure would cause the sector to contract are now starting to be realised.
"While it’s marginal at the moment, we want to stem that bleeding, so support from government is essential," she says. "Energy remains the single biggest cost to businesses and direction to energy suppliers from Ofgem and the government to renegotiate the highest contracts is an essential starting point."