Hospitality prices rise 7.1% amidst growing costs

16 February, 2024

New data reveals that hospitality venues have increased their prices by an average of 7.1% to counter escalating expenses.

Despite robust sales over the festive season, steep operational costs have left hospitality businesses grappling to remain financially buoyant. To safeguard profitability, many are resorting to cost-cutting strategies, as a recent report shows.

In the final quarter of 2023, there was a notable 6.1% surge in net sales revenue compared to the corresponding period in 2022, with December marking a particularly robust month across the industry, witnessing a remarkable 10.5% year-on-year growth. According to 'Fourth', restaurant sales experienced a 2.9% rise in November, followed by a substantial 6.4% increase in December.

Weekday trading throughout the sector saw a commendable uptick during the last quarter of 2023, with revenue climbing by 4.5% between Mondays and Thursdays. Weekend sales also saw an uplift, with Fridays and Saturdays recording a 1.5% rise.

Despite these encouraging trends, challenges persist due to food price inflation, leading to issues such as a reduction in workforce headcount and total hours worked, as highlighted by Fourth.

Sebastien Sepierre, managing director – EMEA At Fourth, commented:

“With the festive trading period being such a crucial time for hospitality, it’s fantastic to see such a significant growth in sales compared to 2022. These figures can hopefully provide operators with a sense of cautious optimism as we head into 2024.

However, the high cost of doing business across the sector continues to be a major concern for operators, who are looking to control costs in an effort to remain profitable during this turbulent economic period.”

Source: Restaurant Online UK

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