CGA and Fourth’s second-quarter Business Confidence Survey revealed that only 23% of leaders are now confident about the next 12 months for the general market—barely a third of the total of 65% at the last survey in March.

The proportion of leaders feeling confident about their own business, while falling by 15 percentage points since the last survey, remains higher at 53%. 

Karl Chessell, CGA’s director - hospitality operators and food, EMEA, said: “After a solid first half of 2022, this Survey shows the squeeze on hospitality businesses is tightening. The full impact of the cost-of-living crisis remains to be seen, but leaders are aware that it is likely to reduce guests’ visits over the rest of the year. While many hospitality venues currently remain profitable and popular, businesses that have been left fragile after Covid-19 lockdowns will now be seriously concerned by the impact of rising costs over the coming year.”

Leaders say an average of 11% of their roles are currently vacant—up by two percentages since the first quarter of 2022. Competition for staff has pushed up pay levels too, by an average of 10% in the last 12 months alone.

Sebastien Sepierre, managing director – EMEA, Fourth, added: “With the constant barrage of challenges hospitality businesses have to contend with, it is a testament to the skills and dedication of leaders and their teams that so many remain successful in the face of this.

“However, this Survey highlights just how incredibly delicate the situation is. Confidence is dropping among business leaders, whose operations are swamped with pressures from all angles, not least rising costs and labour shortages.

“Smart solutions and ingenuity are required to navigate these challenging times and ensure hospitality businesses continue to provide customers with the enjoyable social experiences they crave whilst remaining profitable.”