Page 5 - Essentially Catering Issue 92
P. 5

Essentially Catering Magazine - August 2019

        Industry News

        Patchy optimism in

        hospitality sector

        Confidence levels among the leaders of Britain’s pub, bar and
        restaurant groups remain broadly flat in light of on-going
        political uncertainty and multiple continuing business challenges,
        the latest CGA Fourth Business Confidence Survey reveals.
          The research highlights concern about the frequency of
        consumers’ visits to pubs, bars and restaurants over the rest of 2019.
        Nearly half (45%) of leaders think consumers will eat and drink out
        less often in the next six months than they do now, with far fewer (9%) predicting they will do so more often.
          The poll also revealed a stark contrast in optimism levels between business types. Three in five (61%) leaders of drink-led
        businesses say they feel optimistic about the market as a whole over the next 12 months - nearly twice the proportion of
        leaders of food-led businesses (33%).
          Fragile market confidence reflects the many pressures facing the hospitality sector, including rising labour, property and
        food costs, intense competition and uncertainty over Brexit. It follows a tough first half of 2019, with more than a quarter
        (29%) of leaders reporting that their business’ performance over the last six months had been below expectations - nine
        percentage points up on CGA’s last Confidence Survey.
          CGA group chief executive Phil Tate said: “The patchy optimism among food-led business leaders confirms that 2019 has
        been a rough ride. Leaders of drink-led businesses, however, clearly feel they have much more to look forward to - a sign
        that after many years of pub closures and restaurant expansion, the tables have turned.”
        Hotel guests opting for

        delivered-in food

        A recent forum of hoteliers hosted by EP Business in Hospitality and HGEM was held to question the idea that the
        delivered-in food model could replace hotel room service in the near future.
        HGEM - a guest experience management firm - shared recent
        research that includes the following:
        ●   Two thirds (66%) of hotel guests have used a delivery service to
           order food to their room
        ●   71% of guests aged between 26 and 35 say they order in food
           while staying in a hotel
        ●  48% of consumers find hotel food unappealing
        ●  35% believe hotel food is too expensive.
          Chris Sheppardson, CEO, EP Business in Hospitality, commented:
        “This is a topic that has left many wondering if hotels will adjust and
        raise the bar of what is offered to their customers while looking at new
        ways to increase their profit lines.
          “The general consensus at the event was that this is a fast-paced
        evolution that is becoming an accepted norm today. One of the
        attendees recounted how they will often ‘order in’ food in a five-star London hotel and walk downstairs in their pyjamas to
        collect the food, almost to make a point to the hotel of the need to diversify their services or lose their future custom.
          “It wasn’t long ago that hotels charged for Wi-Fi and other in-room services that have all been eroded – phone calls, film
        streaming, room service etc. Hotels now need to look at how they can provide new services if they are to engage and retain
        their guests in the future.”

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