THE NUMBER of hospitality establishments in the UK has grown for the first time in two years.
Led by a rise in casual dining restaurants, the sector has experienced quarter-on-quarter growth, with 462 new openings between March and June.
After years of facing extremely challenging circumstances that resulted in almost 1000 closures over the last year alone, these figures are beginning to point in the right direction and provide tangible positivity for the resurgence of hospitality in the UK.
NCASS welcomes this news and hopes these signs of recovery continue to blossom. We celebrate the resilience of the sector and the determination of independent businesses to fight through challenges, but we are still calling on the government to do more to support the sector and particularly small and micro businesses.
Nick Summers, MD at NCASS, said: “It’s great to see the beginnings of some green shoots of recovery for the hospitality sector after several extremely difficult years for businesses.
“While the cost of living meant more discerning and frugal customers, sharp increases in operating costs, coupled with higher borrowing costs and frozen tax thresholds, have left many businesses struggling for survival or acting as ‘tax collectors,’ handing 20% of gross revenue as Hot Food VAT for HMRC – while making little or no profit. Many business owners have struggled to see through the challenges of have been forced to close.
“This is the good news, which we take it with caution, that many in the sector have been holding out for, and while there is some way to go and there will always be bumps in the road, it is reassuring to hear that spending power and a willingness to do so is beginning to return to the economy. Businesses that have adapted to the changing market conditions will be best placed to capitalise on a revitalised hospitality sector.
NCASS is calling on government to back small and micro businesses by:
- Unleashing the latent talent, innovation and entrepreneurship that exists across our sector [by adapting licencing and planning rules to enable more agile and innovative trading], to create jobs and revitalise our town and city centres.
- To remove the barriers to growth baked into hospitality businesses by the punitive VAT threshold.
- To lead from the from front with decisive actions to build confidence for both the consumer and businesses to help restore what has been lost.
Nick Summers, added: “We will continue to support the sector of independent food and drink businesses with our products, services, and our collective voice to make it strong again.”
NCASS is the trade organisation for independent food & drink businesses in the UK, with over 30 years of experience in the industry. Members can take advantage of a dedicated account team, expert advice and support, deals & discounts from some of the UK’s most established suppliers, training courses, legal documentation and much more.
For more information about NCASS, visit www.ncass.org.uk
