The latest Coffer Peach Business Tracker figures show that “times are tough for operators” in the hospitality industry.
As the UK continues to spend less on eating out, pubs, bars and restaurant groups nationally have seen just a 0.3 per cent increase in like for like sales compared to last October, with London restaurants the worst hit, suffering a 2.1 per cent fall in same store sales during the month, following a 3.2 per cent decline in September.
“October’s flat trading was at least better than the 0.9 per cent decline the market experienced in September, and is more in line with the trend we have seen across the summer. The truth is that we are seeing little or no growth in the eating and drinking out market,” says Peter Martin, vice president of CGA, the business insight consultancy that produces the Tracker in partnership with Coffer Group.
“This is not to say people have stopped going out – they haven’t,” he adds. “Eating and drinking out is still what the British public like to do, but they are not spending any more or going out any more often. But with more choice of where to go than ever before they are becoming more choosy and trying new places.”
With this in mind, hospitality businesses must be flexible and adaptable to succeed, says Matthew Burge, Hospitality & Leisure expert at Beavis Morgan, who explained in a recent briefing note why adaptability is “the new competitive advantage” for hospitality businesses.
With sales declining as a result of inflation, coupled with an increase in cost pressures in the industry around food inflation and people in particular, times are tough for operators in the hospitality industry. At Beavis Morgan, we have extensive experience of working with clients in the sector and our professionals are acknowledged experts in issues affecting pubs, bars and restaurants.
Through our partner businesses, BM Structured Finance and BM Advisory, we are also able to help with sourcing and restructuring debt finance for SME businesses, as well as assisting with resolving issues which can impact on business performance and success, and finding innovative solutions for businesses and individuals experiencing financial concerns.
Contact Matthew Burge or your usual Beavis Morgan Partner for further information about how we can assist you and your hospitality business.