The outlook for the UK foodservice is strong and the majority of professionals say they are feeling positive about their business performance next year.
A survey of foodservice operators by Horizons, a foodservice insight and analysis firm, has shown that 86% are anticipating an increase in sales in the next year.
A quarter of businesses are expecting an increase in trade, and restaurateurs are the most optimistic, with 34% anticipating an increase in food sales. A quarter of hotels and 20% of bars and pubs anticipated large increases.
Cutting back on cutting back
According to Horizons, fewer operators are planning cost-saving measures than at the same time last year. In Spring 2013, 73% of those surveyed said they would be imposing menu changes to reduce costs. This year that number had dropped to 67%.
Staff cuts have also eased. The number of operators planning to reduce the number of hours their staff were working has fallen by 6%, to 65% this year, over a third are planning to increase staff numbers.
Last year, 46% were planning to withhold capital expenditure. This year’s survey showed only 32% of foodservice operators are planning similar cuts over the next 12 months.
Operators were also shown to be more content with current supply and maintenance contracts than the same time last year. The number planning to renegotiate supply contracts has fallen from 68% to 65% this year, and those with plans to negotiate maintenance contracts has dropped from 38% to 27%.
Of those surveyed, 69% have reported an increase in food sales, and according to horizons many report that consumers are spending more when they dine out.
The approach of spring in the UK has been accompanied by increasingly positive stories of economic recovery and boosted retail spending. But what about foodservice? A new study shows that hospitality professionals are finding plenty of reasons to feel positive about the future.
Emma Read, director of marketing and business development at Horizons, said, “Operators are much more optimistic about future food sales than they have been, and are now confident to scale back on the cost-cutting measures they implemented last year.”
Customers spending more
Many professionals surveyed said their customers were spending more, with the number of people spending less than £6 per head falling, and those spending more than £20 increasing.
According to Horizons, respondents reported fewer customers cutting back on starters and desserts. The survey also revealed a significant fall in the number who say customers are choosing lower priced meals (24% compared with 33% in 2013).
Read said, “While operators reported that customers were still opting for meal deals or promotions and are trading down to lower-priced dishes, this is in sharp decline compared with 2013. Consumers are still cost-conscious, and are likely to remain so, but with average spend rising operators are feeling much more optimistic for the future.”
The Horizons survey, took responses from 300 joint/sole decision makers.
Ellie Clayton
