Key Trends Speedy service is among the key trends driving growth.

HOSPITALITY SPEND ‘UP 9%’ IN JULY

Consumer spending in pubs, clubs and restaurants grew by 9% year-on-year in July according to the latest Barclaycard data.

The latest monthly report from Barclaycard, which which sees nearly half of the nation’s credit and debit card transactions, has released that spending in hospitality venues grew by 9% year-on-year in July as the sector continues to flourish.

Overall consumer spending grew by 7.7% in the same month as Britons enjoyed the busy and warm month.

The report highlights how consumers are cutting back on overseas travel as disposable incomes fall, creating fresh opportunities for hospitality outlets.

Despite the macroeconomic challenges, consumer confidence levels are on the increase. The report found that more consumers are feeling confident about their household finances: 66% versus 59% in June. Concern does remain however with 91% of those surveyed citing worries around rising inflation, surging household bills and higher food prices.

BII DEMANDS ACTION ON RISING ENERGY COSTS

The British Institute of Innkeeping (BII) has written to the Secretary of State for Business, Energy and Industrial Strategy warning that that continually rising energy bills will have a massive negative effect on the industry unless the Government steps in with further support.

The BII wrote to Kwasi Kwarteng MP highlighting that many pubs were reporting increases of more than 300% in their energy bills, on top of pandemic-related debts of approximately £40,000 per outlet.

The letter said the rises were “unsustainable” and demonstrated that pub operators would need to revenues by 20% higher than pre-pandemic levels just to stand still.

The BII has written to Ministers demanding for a cap on businesses energy bills, grants to help with payments, a waiver of business rates and a larger reduction in beer duty.

INBRIEF

TAX SAVINGS ‘SHOULD GO TO BUSINESS’

In response to a Government Levellin Up consultation, the British Beer and Pub Association (BBPA) has called for reductions in business rates to be instantly reflected in bills to business, as well as a cap on bill increases.

The demands included pub businesses whose rateable value decreases following reviews instantly seeing the benefits in the form of lower bills. The trade is also calling for downward caps to be removed to ensure that any decrease in the cost of business rates be paid back to ratepayers immediately, rather than after incremental decreases over time.

Emma McClarkin, BBPA Chief Executive, said: “We need incentives to invest and revitalise our pub businesses. Major reform of business rates is vital to enable this, supported by the ability for those pubs whose valuation has fallen to benefit immediately.”

INDUSTRYNEWS

NEWS, ACHIEVEMENTS AND OPINIONS FROM ACROSS THE INDUSTRY

STAYCATION TREND A ‘HUGE OPPORTUNITY’

New data has found that the staycation trend is flourishing, creating fresh new opportunities for hospitality businesses.

New data from Barclaycard has revealed the top ways that British consumers are adapting their spending behaviour amid the cost-of-living squeeze this summer and among the biggest trends is the revival of ‘staycations’.

The Barclaycard insights are drawn from hundreds of millions of customer transactions recorded in July 2022 and come as consumers look to make the most of the summer and autumn holiday periods.

Rising living costs and airline disruptions are the likely cause of 20% of consumers deciding against a summer holiday this year, says Barclaycard. The majority of these consumers have instead looked to save on their holidays by opting to take a break in the UK instead. The popularity of staycations is driving spend in hospitality as well as among accommodation providers.

The trend creates a clear opportunity for caterers to attract and service those many consumers choosing to take staycations, particularly for venues in or near popular tourist destinations.

EATING OUT ‘UP 42%’ YEAR-ON-YEAR

The latest data from the MealTrak tracking programme shows that the number of consumers eating out over the last 12 weeks has grown by a significant 42% year-on-year. MealTrak is conducted by foodservice data and insight specialists TWC and is the leading continuous tracking programme for out-of-home consumption, surveying 36,500 consumers a year.

Growth was driven predominantly by restaurants (58%) and pubs (32%). Total out-of-home eating occasions grew by 12% in the last year and 9% in the last 12 weeks. Value sales are up 24% on an MAT basis and 19% on a 12 week basis, making the annual value of that eating out market £21bn, up from £17bn the previous year.

TWC Development Director Tom Fender said: “Value growth remains ahead of occasions, indicating consumers are continuing to seek rewarding experiences rather than focusing on prices and functionality.”

INBRIEF

JOB VACANCIES FALL FOR FIRST TIME IN TWO YEARS

New figures from the Office of National Statistics (ONS) show that UK job vacancies have fallen for the first time in two years. A new Labour Force Survey for April to June 2022 estimates that the number of job vacancies fell by 19,800 to 1.274m, the first quarterly fall since the June to August period in 2020. Average pay grew by 4.7% over the same period. The total UK employment rate for those aged 16 to 64 years decreased by 0.1% to 75.5%, still below pre-pandemic levels. However, the number of people in employment increased in the quarter by 160,000.