Steep fall in spending in hotels, bars and restaurants

27 May 2008 by
Steep fall in spending in hotels, bars and restaurants

Spending in hotels, bars and restaurants fell "markedly" over the past three months leading to a record fall in profitability, according to the latest CBI Services Sector survey.

Consumer services firms - including hotels, bars and restaurants - endured an even worse quarter than they had feared, the employers' group said.

Business volumes and values fell at rates not seen since the end of 2001. At the same time, costs accelerated rapidly and profitability sank at a record rate.

Ian McCafferty, the CBI's chief economic adviser said: "Services sector firms are concerned about their business prospects. Consumers are reining in spending on leisure, entertainment and eating out."

Numbers employed by consumer services firms fell for the second quarter running, but this should be short-lived as firms plan modest job increases next quarter, the survey predicted.

Will new markets replace the absent US tourists? >>

Poor weather to blame for hotel business slowdown >>

The Restaurant Group warns of drop in consumer spending >>

Despite ‘golden age' of restaurant openings, its still a tough market >>

By Daniel Thomas

E-mail your comments to Daniel Thomas here.

The Caterer Blog]( Catch up with more news and gossip on the Caterer Blog here
[Newswire For the latest hospitality news, sign up for our e-mail news alerts.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking