Britain's hospitality sector is facing a significant decline in confidence, dropping for five consecutive quarters according to CGA by NIQ's latest Business Confidence Survey. Currently, only 33% of leaders feel optimistic about their business prospects for the next year, with independent operators expressing even greater pessimism. Despite solid trading results over the festive period, nearly half of leaders reported increased labor costs, and rising expenses in food, energy, and rent further burden operators. Upcoming changes in National Insurance contributions are expected to exacerbate these financial strains, forcing many to scale back investments.
The latest CGA by NIQ Business Confidence Survey shows that only a third of Britain's hospitality leaders feel confident about business prospects, marking a continuous decline.
Although many hospitality groups reported strong trading during the Christmas period, rising operational costs—especially labor—have undercut overall confidence in the industry's future.
Insights from the survey reveal that 84% of hospitality leaders predict negative impacts from upcoming changes in National Insurance contribution thresholds, affecting their profitability.
The confidence levels in Britain's hospitality sector are now at their lowest since late 2022, primarily due to rapidly increasing operational costs amid some growth in trading.
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