The Business Confidence Survey from CGA by NIQ drew responses from leaders at chief executive, managing director, chair, board and other senior management levels, with combined oversight of more than 8,000 hospitality sites. The research was conducted in July and August 2024.
The poll indicates just under half (49%) of leaders feel confident about prospects for their business over the next 12 months. This is down by four percentage points from May’s figure of 53% and a third consecutive quarter-on-quarter drop.
Meanwhile 36% of leaders feel optimistic about prospects for hospitality in general over the next year—a quarter-on-quarter rise of two percentage points but nine percentage points behind the level of August 2023.
Nearly three in five (58%) leaders have experienced significant increases in wage costs in the last 12 months and three quarters (75%) have seen at least some increases in food costs.
Karl Chessell, CGA by NIQ’s director - hospitality operators and food, EMEA, said: “After more than four years of disruption from Covid and inflation, hospitality’s leaders are understandably circumspect about the future. With pay and food costs still rising and many consumers still feeling the pinch on spending, it’s not surprising that there has been no post-election bounce in optimism.
“However, long-overdue respite in energy and rents will have loosened the squeeze on operators’ margins, and we can be optimistic that an easing of consumers’ costs will free up more spending in the final few months of 2024. Confidence will need to stay very cautious for some time to come, but with the right support from the new government hospitality will be well-placed to power economic growth and create jobs.”
Half (50%) of leaders have seen a reduction in their energy bills over the last 12 months and more than half (56%) have not seen any further increase in renting costs.
Almost nine in ten (88%) respondents said reform of business rates was a top-three priority, with a targeted reduction in VAT (67%) and more sustainable increases in the National Living Wage (52%) among other top concerns.