‘Glimmers of hope’ for restaurants appearing

There are “glimmers of hope” appearing for the hospitality sector, according to the CEO of UKHospitality Kate Nicholls.

Speaking at the Arena 2024 Savoy Lecture at the Savoy hotel in London, Nicholls delivered a sector update in which she expressed positivity that the challenges the hospitality sector has faced were potentially “coming to an end”, with a more positive and predictable economic environment in sight.

"It’s never been harder to turn that top line revenue into a bottom-line profit," she said, acknowledging that increases in food, water and electricity costs, and the cost-of-living crisis, were having “a real, continued impact” on businesses.

However, she offered reasons for optimism, including the rebounding of global travel and signs of recovery in business, meetings and events, and a projected increase in consumer spend over the coming months, with socialising and eating and drinking out still a priority for consumers.

Nicholls cautiously suggested the industry was “potentially over the worst”, with inflation set to ease to 3.2%, interest cuts expected later this year, and energy and food prices starting to come down, which should feed into improving consumer confidence.

At the event, Nicholls also sat on a panel discussion alongside Pret A Manger CEO Pano Christou; serial entrepreneur, CEO and non-exec director Dame Karen Jones; and BrewDog Bars CEO James Brown. 

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