Challenges and Opportunities for the Hospitality Sector in 2024

The challenges facing restaurants and other hospitality businesses within the UK have been exacerbated greatly in the past two years; affecting the majority from your local family-owned pizzeria to your larger high-street chains.  

The primary contributing factors to this change in landscape are the surge in energy prices. In the Q4 Hospitality Members’ Survey, it was found that 96% of hospitality businesses experienced an increase in energy costs.   

When also considering the impact of the cost-of-living crisis (with an estimated 77% of adults in the UK spending less on going out for food and drink) alongside the Bank of England reporting that hospitality companies are facing interest repayments accounting for over 40% of their entire revenue, it is unsurprising that so many are struggling to keep their head above water.  

One thing that is certain is that many business owners in the UK hospitality industry will need timely intervention to ensure that we don’t see a continuation of the record number of closures in the past decade.  

Here are 3 things that hospitality business owners can start with -  

Utilising Business Support  

Many hospitality businesses remain unaware of the free to access (or heavily subsidised) programs, grants, and expert support platforms that are potentially available to them to support their business growth.  

In Greater Manchester for example, the Business Growth Hub can support hospitality businesses tackle pain points they may be having to become more dynamic, innovative, and cost-effective operators; without having to break the bank thanks to the UK Shared Prosperity Fund. 

Since 2020, the Growth Company has assisted over 102,000 businesses to innovate, transform their businesses and create new jobs. Local businesses in Greater Manchester can utilise the Business Support Tool as a starting point to identify suitable support based on the respective needs of their organisation. For hospitality businesses we have a specialist adviser, Dan Hope, in our Growth team. He is one of team of advisers that can assist businesses.

When considering the surge in energy prices, one particularly useful feature of the support that could be utilised by hospitality companies is Growth Companies’ “Green Support”.  

Specialist consultants can provide insights into saving on energy, materials, and waste... ultimately reducing costs and becoming more eco-friendly in the process (which has become crucial to the hospitality sector in itself) 

Investing into Staff & Training 

Another method of helping “future-proof” your hospitality businesses is to ensure that your employees have access to suitable training and well-being materials. Research indicates that hospitality companies who prioritise staff training are more likely to have happier and engaged staff. Ultimately, this tends to lead to a reduction in staff turnover and its associated costs, which around 97% of hospitality workers in the UK have identified as a key issue. 

Growth Company Skills and Education can help support businesses in Greater Manchester access a range of fully funded adult courses alongside apprenticeships, skills bootcamps, and higher education degrees. This includes a 12-week Principles of Customer Service course alongside a Principles of Leadership & Management course of the same length. 

Enhance Online Presence  

Finally, enhancing the online presence of a hospitality business can now be the difference between surviving and thriving. With the growth of social media in particular, hospitality businesses who are still relying on word-of-mouth marketing and an existing reputation in their area could be missing a trick to promote growth and mitigate the harsh operating environment that currently exists. 

The first steps to moving towards digital growth could be by creating a user-friendly website, pursuing mobile optimization, and making your business more visible via Search Engine Optimisation (SEO). 

Businesses local to Greater Manchester could also utilise Growth Companies’ own Digital, Creative, and Tech service to access specialist support and resources. This may look like accessing cutting-edge information, strategies and techniques, as well as bespoke advice tailored to individual business needs, including an analysis of processes to improve efficiencies at all levels. 

If you’re a hospitality business in Greater Manchester you can access our free expert support – get in touch and see how we can help you - Enquire | GM Business Growth Hub 

Jake Croxton – Key Account Manager, GM Business Growth Hub