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Caterer, Licensee & Hotelier
Editor's Viewpoint
May 2019
Welcome to the May issue of CLH News. Great news that, (to coin a BBC phrase), “Despite Brexit” the hospitality sector is proving quite resilient. As our front-page story shows, according to data from Barclaycard, whilst there is only been a modest increase in consumer spending generally, spending in pubs and restaurants is double digit figures. Further data from CGA also confirms that spending in pubs has been growing. Not so rosy according to statistics for the chain (casual) restaurant sector. As we all know, there have been quite a few casualties in the sector this past 12 months. The growth in managed restaurant openings the past five years was always, in my opinion, unsustainable. Yes, it has been lauded as one of the British economy’s great success stories over the past 10 years, but that was followed by site closures and creditors voluntary arrangements for big names such as Jamie’s Italian, Prezzo, Carluccio, Gaucho all closing outlets and seeking CVA’s. EDITOR
Peter Adams
I don’t think it’s too difficult to work out what went wrong. Many chains simply overextended, creating overcapacity, which then led to meal deals, vouchers and discounting. This initially may seem attractive, but is always a race to the bottom. Added to that was the fact that many had negotiated rents during the good times, which again are unsustainable when times are tough. Added to which, we have seen business rates increase, apprenticeship levy, national minimum wage, pension contributions all squeezing the bottom line. The decline in the sector can be a real opportunity for the independent sector. In fact, we did run a report last year where one of the industry’s leading purchasing companies highlighted this exact message - that there is a real opportunity for the independent sector to capitalise on the multioutlet sectors’ “woes”. We now approach one of the industry’s busiest periods, and with the restaurant and on-trade sector riding the current “Brexit” storm, we are encouraging the independent sector to get creative in what they offer and also how they market themselves. Simple fact is in the Summer people WANT to be out more, and businesses that plan and prepare will reap the benefits! We have some great features in this issue which will give some useful hints, tips and industry insight, plus, of course, products and services to help increase sales. We here at CLH News are doing our bit, visit our website http://catererlicensee.com/posters-for-special-events/ we have a poster for every occasion free to download! Just wanted to take this opportunity to add our support for Mental Health Week. I was at first staggered when I saw the statistic of 8 in 10 chefs suffering from poor mental health, but then I remembered my own years in the kitchens, particularly when I had my own bar/restaurant here in Bournemouth and how it affected me. Next month, we will be inviting experts to advise on what we in the industry can do to help alleviate the stresses and pressure on those working the industry. We would welcome any comments readers would like to submit.
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EDITOR Peter Adams
SALES EXECUTIVES David Bartlett Guy Stephenson
PRODUCTION & DESIGN Matthew Noades
PRODUCTION & WEB ADMIN Shelly Roche Published by