What does the future hold for the hospitality industry?
Nowhere has the seemingly endless torment of Brexit been more keenly felt than in the hospitality industry. New research has found that a no deal or delayed Brexit could cost the hospitality industry £1.8bn a year by 2024, with businesses losing up to 23% of their non-managerial workers. So, what does the future hold for the post-Brexit hospitality industry?
SKILLS SHORTAGE
The skills shortage within hospitality is well documented. Many EU nationals have already left the UK fearing the worst, and others who decided to relocate are understandably having second thoughts. A promise to allow EU nationals already working in the UK to stay is providing little comfort, given the chaos of the negotiationsa and the uncertainty whether a new leader of the Conservative party/Prime Minister will honour the promises made by Mrs May.
It’s a widely accepted view that not enough is being done to encourage people to embark on a career in hospitality. As Fazenda owner Thomas Maunier comments, working in this business is more than just ‘putting food on plates’, it’s about giving customers the highest quality service. However, with the ever tightening purse-strings, many businesses simply will not be in a position to embark for more expensive home-grown staff recruitment drives.
A FINANCIAL BATTLE
The financial effects of Brexit are being felt. Property purchases are on hold, and employers are struggling to meet the higher wage demand caused by the skills shortage. In addition, some restaurants are reporting a 20% increase in the prices of ingredients, and for many it’s nothing short of financially catastrophic. In terms of a solution, plans to retain staff and train the next generation could be a way forward. But efforts must be sustained and effective. The offer of working longer hours for less pay will do little to win the hearts and minds of those the industry is looking to bring on board.
The post-brexit hospitality landscape remains unclear. But chances are that many businesses may not survive the Brexit juggernaut. In the meantime, until a deal is signed, sealed and delivered, irreparable damage to the hospitality industry continues to be caused by ongoing political limbo.
If you wish to discuss the effect of Brexit uncertainty on the fortunes of your business, and would like advice regarding the reorganisation of your business or negotiations with creditors regarding time to pay, please contact Michael Chamberlain of Chamberlain & Co on 0113 2420808 or at michael.chamberlain@chamberlain-co.co.uk.
