Many hospitality leaders have been forced to raise prices and reduced staff levels - London Business News | Londonlovesbusiness.com
Briefly

41% of leaders feel optimistic about their business prospects over the next 12 months, up seven percentage points from Q1 2025. Confidence about the hospitality sector in general is lower at 18%, up three points quarter-on-quarter, but still well below levels from 2024 and 2021. Just over half (53%) of leaders reported year-on-year revenue increases in Q2, while 28% reported declines; like-for-like spending was broadly flat. Revenue gains have come from higher menu prices and new openings. Rising costs—higher minimum pay, increased National Insurance and sustained food and drink inflation—have reduced margins, with 37% reporting lower profits and many holding limited cash reserves.
Just over half (53%) of leaders say revenue increased year-on-year over the second quarter-nearly double the 28% who say it dropped. However, increases are largely the result of higher menu prices and new openings, and the CGA RSM Hospitality Business Tracker has indicated broadly flat spending on a like-for-like basis in the first half of 2025. Meanwhile, higher costs-including higher minimum pay levels and National Insurance contributions from April, as well as sustained inflation in food and drink-have hurt the margins of many operators.
Despite the recent uptick, leaders' confidence remains at historically low levels. Their optimism for their own businesses is 15 percentage points down on the second quarter of 2024, and 29 percentage points below the levels of August 2021. Revenue up but profits down Cautious confidence has been fuelled by stable spending in pubs, bars and restaurants in 2025. Just over half (53%) of leaders say revenue increased year-on-year over the second quarter-nearly double the 28% who say it dropped.
Read at London Business News | Londonlovesbusiness.com
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