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Confidence is increasing in the hospitality industry, with restaurants hotels and pubs all expecting an increase in sales over this next year.
The food service industry is in a phase of positive growth, and this has rippled through businesses across the country. Restaurateurs are the most confident, expecting an 86% increase in sales. This means many plans for cutting costs this year have been withdrawn, with many companies now planning to take on more staff. Confidence is also reflected in the increased amount of openings and acquisitions that we've witnessed already this year, with Bill's and Itsu as good examples of this.
Horizons' latest report states that this has all arisen from a marked increase in consumer spending. They highlighted that more businesses reported increased lunch and weekend sales and that fewer customers were skipping starters and desserts. There have also been large amounts of companies reporting significant year-on-year increases in food sales.
In their blog on the subject, Horizons' still believes that consumer confidence is fragile, stating that issues such as; the weather, political uncertainty and the Scottish referendum are all factors to consider. Their managing director Peter Backman was confident enough, though, to predict the industry's real growth this year at 3.8%.
With this recovery looking increasingly consumer-led, it is important to have and maintain a great relationship with your customers. Having a loyal bank of customers means that they will be more willing to accept price increases and will supply you with a reliable group of advocates.
The greater confidence is inspiring more innovation from those wanting to steal a march on the market. Much of this is fuelled by engagement with guests and rapid feedback on what's working.
So, whilst there are grounds for optimism, there will still be winners and losers - whatever the weather!
