THE LEADING PUBLICATION FOR THE INDEPENDENT HOSPITALITY SECTOR
RETURN TO PROFIT Let us help you put your business back into profit We work “hands-on’ with you, in your business to:
1. 2. 3. 4.
Maximise your Profit Margins Minimise your Operating Costs Resolve any Operational and Staff Issues Increase the Profit from your Business
We will tailor a package that is realistic and practical for your business
Please call David Hunter of The Bowden Group for an informal chat about how we can HELP YOU
07831 407984 or
01628 487613
HOTELS, RESTAURANTS, PUBS & CATERING
www.catererlicensee.com
January 2018
Issue 208
Hotelympia 2018 Preview
Products and Services
The Source Trade Show Preview
Property and Professional
Page 26 - 28
Pages 28 - 29
Design and Refit
Pages 30 - 35
Pages 35 - 43
Pages 44 - 47
Hospitality Sector Vulnerable in Brexit "Worst Case Scenario"
A NEW REPORT has identified the hospitality industry as an area of the economy particularly vulnerable from the fallout of Brexit, due to the industries “heavy reliance on foreign workers”.
The analysis entitled “Preparing for Brexit” commissioned by the Mayor of London, Sadiq Khan, indicates that a 'no deal' hard Brexit could lead to a lost decade or longer of significantly lower growth. The worst-case scenario could result in overall damage to the economy including: • 500,000 fewer jobs • 87,000 fewer jobs in London by 2030 • Nearly £50bn UK-wide investment lost by 2030 The report cites a British Hospitality Association immigration report, “Labour Migration in the Hospitality Sector”, commissioned by the BHA from KPMG in March 2017, which points out that the hospitality sector is “highly reliant” on EU national workers, with up to 24 per cent of the sector’s workforce made up of EU migrants. It says that the labour shortfall 10 years after Brexit would be 1 million if EU migration fell to zero from 2019 The research focused on hospitality where currently 3 million people are employed. The BHA also represents tourism and estimates that there are 4.5 million workers employed across hospitality and tourism as a whole, the fourth la gest industry in the UK contributing 10 per cent of GDP. The report points out that when taking both hospitality and tourism together, the recruitment gap would be even greater. The KPMG report says that 75 per cent of waiters and waitresses, 25 per cent of chefs and 37 per cent of housekeeping staff are from the EU. Speaking at the time Ufi Ibrahim, Chief Executive of the British Hospitality Association, said: “It is clear from the KPMG report that hospitality and tourism face major problems in recruitment if there is any major cut in the number of workers allowed to enter from the EU. We want to avoid there being any cliff edge but the Government must be aware that in the medium to long term we will still need considerable numbers of EU workers, who have contributed so much to our industry and the UK economy in general.Even softer Brexit scenarios, like the UK remaining in the Single Market, but leaving the Customs Union after a transition period could still result
in a 176,000 fewer jobs across the country. Mr Khan said: “This independent analysis reveals the potential economic risks – and human costs – at stake in the negotiations. “If the Government continues to mishandle the negotiations we could be heading for a lost decade of lower growth and lower employment. The analysis concludes that the harder the Brexit we end up with, the bigger the potential impact on jobs, growth and living standards. Ministers are fast running out of time to turn the negotiations around. A no-deal hard Brexit is still a very real risk – the worst possible scenario.” A future trade relationship must be agreed between the Government and the EU by 27 October this year. The Mayor is warning that with just 10 months to go, time is running out. In total, five scenarios were modelled by Cambridge Econometrics to illustrate the range of possible outcomes of the UK’s future relationship with the EU. These are: • Scenario 1 - A ‘close to status quo’ scenario where the UK remains part of both of the single market and customs union • Scenario 2 - A scenario where the UK remains part of the single market, but not the customs union • Scenario 3 - A scenario where the UK remains part of the customs union, but not the single market • Scenario 4 - A hard Brexit scenario in which trade between the UK and the EU falls under World Trade Organisation (WTO) rules with a two-year transition period from March 2019 • Scenario 5 - The same hard Brexit scenario but without a two-year transition period Reacting to the report, the Association of Licensed Multiple Retailers (ALMR), which represents the UK's pub, bar and restaurant sectors, reiterated its call for a “constructive future immigration policy”. ALMR chief executive, Kate Nicholls, said: “The report highlights the important contribution being made by EU nationals to the capitals hospitality sector and the difficulties businesses would face should they be unable to access labour from the EU. “The Government has already made a commitment to EU nationals living in the UK, but it is crucial that any future immigration policy reflects the need for hospitality businesses to employ non-UK workers.”
RETURN TO PROFIT
Let us help you put your business back into profit...
PROFIT TURNAROUND
MAXIMISING PROFITABILITY
If you have a Restaurant / Hotel / Pub business that is not profitable, and you want it turned around, call David Hunter on 07831 407984 to discuss this. We have a very impressive 30-year track record of profit turnaround, and David is the very best person to help you to turn your business around.
If your business IS profitable, but you need it to be MORE Profitable, David Hunter can do this for you. David will ‘’benchmark’’ your business against the current market, and will tell you what SHOULD and CAN be achieved by that particular and individual business. David will work with you and your Team to deliver that essential improvement in Profitability.
We will tailor a package that is realistic… and practical, for you… Please call David Hunter of The Bowden Group about how we can HELP you…
07831 407984 or 01628 487613
HOTELS, RESTAURANTS, PUBS & CATERING
www.guysimmonds.co.uk
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