Nearly 1,000 sites in hospitality shuttered in Q2 22: report
But the sector must brace for closures due to inflation.
Almost 1,000 sites in the hospitality industry stopped operations in the second quarter of this year as trading is unsustainable, the latest Market Recovery Monitor from CGA by NielsenIQ and AlixPartners showed.
The licensed premises were under 106,000 by the end of June 2022, similar to June 2021 and March 2022 levels, the report also showed.
It said more net closures are expected in the second half of 2022 with sharp rises in food and energy prices, labour shortages, and supply chain woes will continue to bite the industry.
Karl Chessell, CGA’s director for hospitality operators and food, EMEA, said, “These numbers are a welcome indicator of stability in hospitality, and proof that operators have built back well from the turmoil of COVID.”
“But this solid recovery is now under severe threat from a powerful combination of inflationary pressures and other challenges, and we are likely to see a lot more churn of openings and closures over the second half of 2022. Hospitality’s long-term outlook remains very positive, but it is clear that many businesses have a bumpy road ahead,” he added.
