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Hospitality revenues generated in the last 12 months were 4.1% above the pre-pandemic level, the UKHospitality Quarterly Tracker in association with CGA says.
Despite the results showing a strong consumer demand, they are still significantly below the like-for-like sales required to keep up with inflation however. The tracker also shows that the sector’s turnover contracted by 0.3% in Q1 this year, compared to the same period in 2022.
UKHospitality chief executive Kate Nicholls said that the figures don’t come as a surprise and are simply a result of the chronic inflationary pressure on hospitality.
Nicholls said: “Despite consumer demand remaining strong and revenue being up in 2019, businesses are simply nowhere near able to keep up with the cost pressures they’re facing across energy, food and drink. Even more concerning is that our fear that this endless pressure would cause the sector to contract are starting to be realised, with turnover contracting in the first quarter of this year.
“While it’s marginal at the moment, we want to stem that bleeding, so support from Government is essential. Energy remains the single biggest cost to businesses and direction to energy suppliers from Ofgem and the Government to renegotiate the highest contract is an essential starting point.”
