"The Survey highlights a growing split in hospitality, with 25% of hospitality leaders currently able to increase both their operational and capital expenditure, but 14% forced to reduce both. This indicates the current fragility of the sector, with 9% of leaders reporting that they now have no cash reserves to draw on, while 53% have fewer than six months of reserves."
"Intense cost pressures are forcing businesses to make difficult decisions on investment, but leaders recognise the value of capex in sustaining sales and keeping pace with competitors. Two thirds (65%) of leaders say site refurbishments are a high or medium priority for investment, while 55% say the same about workforce management technology. Half (50%) identify both customer-facing technology and site acquisitions as high or medium priorities."
Nearly two thirds (63%) increased operational expenditure over the last 12 months because of inflationary pressure on labour, food and drink and other inputs. Only a third (34%) increased capital expenditure; close to half (45%) cut capex—more than double the 20% who reduced operational expenditure. Twenty-five percent can increase both operational and capital expenditure, while 14% have reduced both. Nine percent have no cash reserves and 53% have fewer than six months' reserves. Independents: 22% increased capex, 60% cut it—15 percentage points above the sector average. Investment priorities include site refurbishments (65%), workforce management technology (55%), and customer-facing technology and site acquisitions (50%). Economic environment is a capex barrier for 61%, while only 27% cite consumer sentiment.
Read at London Business News | Londonlovesbusiness.com
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