The poll shows 41% of leaders feel optimistic about prospects for their business over the next 12 months—up by seven percentage points from the first quarter and a second successive increase.

The proportion of leaders feeling confident about the future of hospitality in general is lower at 18%, but rose by three percentage points quarter-on-quarter.

Despite the recent uptick, leaders’ confidence remains at historically low levels. Their optimism for their own businesses is 15 percentage points down on the second quarter of 2024, and 29 percentage points below the levels of August 2021.

More than four in five (84%) leaders say extra operating expenses have forced them to raise prices since April, while nearly half (48%) have reduced their staffing levels, 61% have cut hours available to their teams, and 34% have deferred pay increases. Two in five (41%) have cancelled investment plans.

Karl Chessell, director - hospitality operators and food, at CGA by NIQ, said: “Hospitality is a remarkably resilient sector, and these figures suggest leaders have responded nimbly to the many challenges they have faced in 2025. However, fast-rising costs are clearly taking a toll on many businesses’ margins.

“There’s a dangerous ripple effect too, as leaders are being forced to take difficult decisions on employment and investment, while inevitable increases in menu prices are damaging consumer confidence. Well-run, distinctive and guest-focused hospitality operators can look forward with optimism, but without urgent government intervention the sector will struggle to generate the economic growth we know it is capable of.”