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ISSUE 212
CLHNews
MAY 2018
Cost Pressures Risk Hospitality Sector Job Creation and Growth
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UKHospitality has warned the Government that taxation and regulatory pressures risk undoing the good work and job creation carried out by the hospitality sector since 2008. The warning follows the publication of data by the Office for National Statistics that shows 31,000 fewer jobs compared to same period last year. The data highlights a 3rd consecutive quarter of contraction in jobs numbers and 92,000 fewer jobs compared to peak of Q2 2017. Despite this, the number of jobs in the sector is still nearly 400,000 more than at the end of 2008. UKHospitality Chief Executive Kate Nicholls said: “The hospitality sector has done a fantastic job at creating opportunities, revitalising high streets and stimulating growth since the financial crisis. The sector has been a major driver of employment, creating 1 in 7 of all new jobs despite increasing cost pressures and legislative restrictions.
“The new data from the ONS suggests that these cost pressures are becoming too much for some employers and, consequently, we are looking at a reduction in the number of jobs compared to last year. It also seems no coincidence that the reduction in jobs should follow so closely from the disastrous business rates revaluation that has heaped more pressure on venues. “We have been vocal and persistent in our message to the Government that if businesses continue to face spiralling taxes, they will struggle to invest and grow and, ultimately, jobs will be at risk. “The sector is still in a very strong position and has an opportunity to continue creating jobs and revitalising communities around the UK, but only if exorbitant and destructive costs are tackled by the Government.” The warning follows earlier concerns raised by Travelodge chief executive who said in March this
year that soaring business rates and stifling taxes are putting job creation in the hospitality sector at risk. Peter Gowers told the Press Association that a string of costs facing businesses could result in "unintended consequences. The Government is putting rocks in our rucksack, with the National Living Wage, business rates, the Apprenticeship Levy and pensions changes. The hospitality sector has created thousands of jobs over the past few years, don't choke it off." The hospitality industry generates an estimated £130bn in revenue for the UK economy, however soaring costs are now beginning to “bite”. Casual dining chains such as Handmade Burger Co, Byron, Prezzo and Jamie's Italian have all closed sites, some entering into creditors voluntary arrangements, with all citing spiralling costs. Café Rouge reported losses of £60m earlier this year.
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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
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