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The Change Group predicts 2018 will be a year for hospitality businesses developing ‘smart practices’ in the face of increasing economic hardship and changing consumer habits.
According to Change uncertainty over Brexit, as well as higher interest rates, business rates and inflation, will continue to erode consumer confidence and spending power, while increasing costs for operators.
The organisation also says solutions to sustain success will involve looking at restaurant space more creatively in order to drive greater revenue, as well as exploring new and local provenance and British ingredients to offset increasingly prohibitive import costs.
Change says the sector will need to find “resourceful” ways to attract and retain skilled employees, which could include looking at how more flexible working and pay, as well as more tailored training and career development can entice more British people to work in hospitality.
Change also note that satisfying rapidly changing consumer behaviour will be key. As millennials become a more significant proportion of consumers. The consumer appetite for innovation has already been whetted by new app-based services and technologies that enable hospitality and fine dining to be accessed in different ways.
Craig Allen, co founder of the group, said: “The challenges which hospitality companies have faced in 2017 are not going to go away anytime soon. We’re already seeing the sector wanting to find ways to work around issues and bring a fresh perspective, especially in terms of the all important question of recruiting the best talent.
“While economic factors such as inflation and business rates are already having a huge impact on hospitality companies in London, alongside significant impact from changing consumer habits.”
