Two thirds of around 250 senior executives polled for the survey were either very optimistic (10%) or optimistic (57%) about their business prospects in the next 12 months.
CGA Peach vice president Peter Martin says: “Our fascinating Business Leaders’ Survey reveals a sector facing a barrage of input costs in property, food and people, with rates the issue at the top of execs’ in-trays.
“But this is a positive industry that is very much on the front foot rather than in retreat, and that deserves government support to ease its burden of expenses. Operators will have to ride out some big challenges in 2017, but strong, differentiated operators that can deliver a compelling offer while keeping a tight rein on their costs are well placed to thrive, both this year and well beyond.”
Property was a major concern as the revaluation of business rates topped the survey’s list of most significant challenge facing operators in 2017 with 55% of those surveyed very concerned and 24% concerned by the issue. Soaring rental prices in UK hotspots, the rising cost in food and the introduction of the National Living Wage were also significant concerns for operators.
The survey showed optimism despite the challenges with 21% of leaders planning to open at least ten new sites and 29% looking into business acquisition over the next 12 months.
The report can be downloaded here.