Cost of living crisis led to decline of hospitality leaders’ confidence: study

Only 23% of hospitality leaders are confident about the market.

The confidence of restaurant, pub, and bar owners fell with only 23% of the sector’s leaders confident about the next full year for the general market, a recent study from CGA by NielsenIQ and the Fourth, showed.

This is a decline from March 2022 survey results of 65% of leaders who said they were confident about the market.

The Business Confidence Survey also indicated that most of larger businesses remain profitable for now. About 88% leaders said their firm is operating at a profit and more than half said their profitability is at or above pre-COVID-19 levels. 

Business leaders are also aware that soaring prices will change consumers’ spending. They expect a 6% drop in sales and a 12% impact on profit margins in the next 12 months.

Karl Chessell, CGA’s director - hospitality operators and food, EMEA, said, “After a solid first half of 2022, this survey shows the squeeze on hospitality businesses is tightening. The full impact of the cost-of-living crisis remains to be seen, but leaders are aware that it is likely to reduce guests’ visits over the rest of the year.