Hospitality sector expands in fourth quarter despite challenges

20 January, 2022

Britain’s hospitality sector grew modestly in the last quarter of 2021, according to the latest CGA Market Recovery Monitor.

The study recorded a 1.6% increase in the number of site openings between September and December 2021 representing the first quarter-on-quarter growth for more than five years, helping to reverse the number of closures during the pandemic.

The number of independent outlets that went through expansion also increased by 1.8% in quarter four of 2021.

However, with the sector facing a multitude of ongoing challenges, including rapidly rising food and energy costs, staff shortages and supply problems, there remains a huge amount of uncertainty for many businesses...

According to CGA, Britain has lost more than 8,000 pubs, bars, restaurants and other licensed venues since March 2020 – equivalent to a net loss of around 13 sites a day.

So while the increase in sites over the last three months demonstrates the resilience of the industry, the disappointing December trading leaves new and established businesses in a vulnerable position as they enter the new year.

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