Regional reflections

While all distributors agree there is steady growth in sales, it is not even in all parts of the country and in all equipment sectors.

More than a third expect to be buying more equipment during 1994, only 10% expect to be selling less.

When caterers were asked what specific areas of equipment they would be investing in, the key point to emerge was that tableware was top of the list, most citing the reason that poor standards in tableware had a direct effect on the image.

One of the significant findings of the survey is the difference in regional buying plans. It is clear that spending plans are higher in the Midlands and northern England than in Anglia, parts of the South and the South-west.

In the north of England, 43% of those polled report plans to increase spending on equipment this year. In the Midlands, 39% forecast increased spending and in Scotland the figure is 38%. Equally significant, only 8% of catering businesses in Scotland forecast a lower spend on equipment this year, and 11% in both the Midlands and the north of England.

This bears out the cautious optimism in the Birmingham area that the National Exhibition Centre, the International Convention Centre and the National Indoor Arena will continue to bring increased occupancy levels on a year-round basis in the West Midlands.

Northern lights

There has also been steady growth in hotel occupancy during the past 12 months in the north of England with Leeds, Warrington and, to a lesser degree, Manchester seeing rises in both occupancy and room revenue.

Scotland's strong showing in the survey is another reflection of the mood among hoteliers. Recovery is continuing in Glasgow despite increased bed stock coming into the city and there are clear reasons why hoteliers are investing in equipment.

The move of Glasgow's prime international airport from Prestwick on the Ayrshire coast, to Glasgow, brought an immediate boost to international business traffic which is continuing to grow. Tourism is also growing, thanks to some effective marketing.

Edinburgh's hotels and restaurants anticipate very good business from both home and international destinations when the city's multi-million pound international convention and exhibition centre opens next year.

This buoyancy in equipment buying forecasts in the Midlands and the North contrasts sharply with East Anglia, where 22% of businesses report plans to spend less on equipment this year than last. Almost half say spending will be the same as last year and just 30% expect investment to be higher.

The story is not much better in the South-west, where 71% of those polled say investment in new equipment will be the same or less this year than last year.

Both these areas have traditionally relied heavily on fair-weather tourism, mostly from the home market, for their business. The decline of the seven-day family holiday into a short break of two or three days, with neither new tourism nor significant growth in business traffic stepping in to replace the lost business has contributed to this stagnant position.

Towards recovery

London is the one area of the south of England where sales are set to grow in the next year as the capital continues to recover its lucrative overseas tourist market, particularly from the USA and Japan.

The most spectacular forecast in the hotel and restaurant section of the survey occurs when the type of equipment to be bought this year is analysed. Tableware is by far the biggest area of planned expenditure, with 93% forecasting an increase or the same level in spending and just 7% saying they will be cutting back this year.

This reflects the belief that equipment the customer physically comes in to contact with, such as tablecloths, knives and forks, must take precedence over the kitchen when it comes to spending.

However, hotels are still keen to spend on heavy equipment, with 34% saying spending would be significantly higher this year than last year.

Hospitals' buying forecasts largely reflect the uncertainty in this sector over what lies ahead in catering for hospital patients.

Most forecast no change or reduced spending on equipment. The 18% of hospitals who predicted increased spending on kitchen utensils was by far the most pessimistic forecast of any group in any equipment sector.

The section of the report dealing with educational catering reports one significant finding. The number of caterers forecasting an increased spend on heavy equipment in the educational field, 38%, is the highest of any sector polled, including hotels.