Ask hospitality leaders what concerns them the most and you get a clear answer: labour costs, food costs and business rates. Those three areas stood out against all the other pressures respondents to The Caterer and CGA’s Business Leaders Report were asked to consider, such as energy costs, tourist taxes, market saturation, interest rates and the impact of terrorism.
It makes sense to professor David Russell, chairman of hospitality consultancy The Russell Partnership. “In a business where 60% of your costs are made up of labour and food, you are going to worry about them first. We are all reasonably aware that bank rates aren’t going to shoot up and issues like terrorism are things that people don’t tend to worry about until they actually happen. It is too unpredictable so it doesn’t fall into our everyday risk register,” he explains.
You need to be a premium member to view this. Subscribe from just 99p per week.
Already subscribed? Log In