Led by a rise in casual dining restaurants, the sector has experienced quarter-on-quarter growth, with 462 new openings between March and June 2024. NCASS welcomes this news and hopes these signs of recovery continue to blossom.
After years of facing extremely challenging circumstances that resulted in almost 1,000 closures over the last year alone, NCASS says these figures are beginning to point in the right direction and provide tangible positivity for the resurgence of hospitality in the UK.
Nick Summers, managing director at NCASS, said: “It’s great to see the beginnings of some green shoots of recovery for the hospitality sector after several extremely difficult years for businesses.
“While the cost of living meant more discerning and frugal customers, sharp increases in operating costs, coupled with higher borrowing costs and frozen tax thresholds, have left many businesses struggling for survival or acting as ‘tax collectors,’ handing 20% of gross revenue as Hot Food VAT for HMRC - while making little or no profit. Many business owners have struggled to see through the challenges or have been forced to close.
“This is the good news, which we take it with caution, that many in the sector have been holding out for, and while there is some way to go and there will always be bumps in the road, it is reassuring to hear that spending power and a willingness to do so is beginning to return to the economy. Businesses that have adapted to the changing market conditions will be best placed to capitalise on a revitalised hospitality sector.”