Branded hospitality businesses to survive
A new report on the UK hospitality market outlines challenges for foodservice operators.
A new report on the UK hospitality market has said that challenges for foodservice operators will remain in 2024, leading to growing numbers of independent businesses closing.
However, in good news for some garden centre caterers well-funded and managed branded businesses will survive, and potentially thrive, as the economy improves and as consumers build confidence and disposable incomes.
The 2030 Vision report has been produced by Future Foodservice, the forecast and advisory business founded by Simon Stenning, the leading forecaster, analyst and commentator on the UK hospitality/foodservice market. It comprises approximately 150 pages of detailed analysis, data, forecasts, macro-factors and trends.
The report also says that as consumers retain both a value-seeking and treating mindset, the polarisation between social refuelling and premiumised experiential dining will continue to grow, leading to almost tectonic shifts in the market. Technology-driven, friction-free food solutions will be on one side, with leisure-based, experiential dining, and activities that deliver significant pleasure to those consumers who invest their time and money into that occasion, on the other.
"The hospitality and foodservice industry continues to face enormous challenges, with higher costs of doing business and increasing costs of labour, but also with customers being squeezed with their disposable incomes," says Stenning. "This is leading to lower-cost operators performing well, and higher-priced operators managing to survive.
"This is a cautious forecast, wary of how consumers are being affected, and recognising that not all businesses will survive the challenging conditions. Growth over the long term improves in small percentages, and will be hard fought to come by; and yet there are some segments and concepts that will see significant growth as they develop in a constantly changing landscape."
The full report is available now at futurefoodservice.com.