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

Lack of financing may dampen restaurateurs' confidence

20 August 2009 by
Lack of financing may dampen restaurateurs' confidence

The UK's major restaurant operators are confident they can outperform the economy in the next two years but lack of financing may limit growth and expansion, research has suggested.

The report, which questioned the 24 members of the British Hospitality Association's National Restaurants Group, found that more than one third of operators expect slight growth in 2009 and 2010, with the same number predicting strong growth next year.

However, the report, compiled by accountants BDO Stoy Hayward, warned that growth would be inhibited if banks do not make finance to operators more readily available.

While half of operators found that current lending had hardened in the last 12 months, nearly two thirds said it was worse for new lending. More than a third of businesses believed they will require additional funding in the next 12 months while half said they will need more in 2010 and 2011.

Despite this confidence in the future, however, half of respondents said customers are eating out less, with 60% observing a drop in spending. More than 70% of operators said there was a significant fall in corporate spending.

David Campbell, head of restaurants and bars at BDO, said operators have been quick to react to the economic downturn.

"More than three quarters of operators have reduced the number of staff and almost two thirds have frozen wages and salaries. Menus have been re-engineered and 88% have renegotiated food and beverage contracts," he said.

Restaurateurs less gloomy about the future, finds report >>

Restaurateurs urged to keep costs low >>

More diners are eating out but are spending less, says survey >>

By Kerstin KÁ¼hn

E-mail your comments to Kerstin KÁ¼hn here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.caterersearch.com/tabletalk

Caterersearch.com jobs
Looking for a new job? Find your next restaurant job here with Caterersearch.com jobs

Blogs on Caterersearch.com](http://www.caterersearch.com/blogs) Catch up with more news and gossip on all Caterer's blogs
[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
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.

close

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