Confidence is starting to return to the eating and drinking-out sector despite a “host of pressures on the market” the CGA Fourth Business Confidence Survey has claimed.
The survey, based on responses from 160 leading figures from the industry, was carried out in May by business insight consultancy CGA in partnership with hospitality software provider Fourth.
It found that 75% of company leaders were optimistic about the prospects for their own business over the next 12 months – the highest levels recorded for more than two years.
However, it also reported that less than half (47%) of bosses were “upbeat about prospects for the wider eating and drinking out sector” over the next 12 months.
This is compared favorably to the previous survey, which found that only 34% of F&B leaders were optimistic about the future.
CGA’s chief executive Phil Tate said the “upbeat tone” of the survey appeared “at odds with the recent news of some high-profile restaurant closures in the first half of this year” which he said was “driven by business challenges including rising food, people and property costs and the uncertainty surrounding Brexit.”
He continued: “But it might be because of this market shake out, coupled with more stable food prices, that business executives are now gaining more confidence. After a tough start to 2018, this latest Business Confidence Survey is a welcome reminder that hospitality remains an essentially upbeat industry.”