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Budget fears may hit hospitality spend warns Lynx Purchasing

2nd Sep 2024 - 08:32
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Budget fears may hit hospitality spend warns Lynx Purchasing
Abstract
Concerns about the impact of the October Budget, as well as higher energy costs this winter, are likely to have an impact on fragile consumer confidence warns hospitality buying specialist Lynx Purchasing.

The warning comes as Lynx Purchasing published the Autumn 2024 edition of its regular Market Forecast. Lynx Purchasing uses insight supplied by a range of suppliers, as well as official inflation data, to look at food and drink pricing across the Autumn trading period.

Rachel Dobson, managing director of Lynx Purchasing, commented: “The recent cut in interest rates, along with lower inflation, had offered a glimmer of hope to hospitality operators in terms of persuading consumers to eat out. However, the prospect of changes to some taxes, including to pensions and inheritance, will concern many ‘grey pound’ consumers, who are a mainstay for many businesses.

“Add to that pensioners losing their Winter Fuel Allowance just as it becomes clear energy prices will increase again this winter, and hospitality operators will understandably have concerns about consumer spending in the run-up to the all-important festive trading season.”

Product areas flagged up the Market Forecast include:

  • Beef: Production continues to be below usual levels after some producers cut back on the size of herds in response to lower retail prices.
  • Fish: With some cod quotas expected to see significant reductions next year, Autumn is a good time to persuade customers to try a broader range of fish, with UK species such as plaice, sole and monkfish in good supply.
  • Potatoes: The potato crop in both the UK and Europe was severely impacted by the floods earlier in the year, which reduced the land available for planting.
  • Coffee & cocoa: The impact of extreme weather has hit crops, leading to a sharp increase in global commodity prices.

A free copy of the Autumn 2024 Lynx Purchasing Market Forecast can be downloaded from the website at www.lynxpurchasing.co.uk.  

Written by
Edward Waddell