Sales boost as hospitality sector bounces back

28/03/2023

The hospitality sector has had a boost in February sales as Britain’s leading managed restaurant, pub and bar groups were 3.9 per cent ahead of last year on a like-for-like basis.

The latest Coffer CGA Business Tracker survey recorded year-on-year growth for five consecutive months. However, the figure is substantially down from 10.1 per cent in January and is well below the current rate of inflation in the UK.

Pubs performed the best of the Tracker’s three market segments to continue a solid start to 2023, with like-for-like sales 6.9 per cent ahead of February 2022. Restaurants achieved modest growth of 1.9 per cent but the bars segment continued to struggle, with sales down 10.1 per cent.

Labour shortages remain a problem and the Government has asked the Migration Advisory Committee for advice on whether the hospitality, construction and retail industries should be on the list of sectors where there is a shortage of workers, helping them to recruit from overseas.

It would help tackle some of the problems the sector is having to overcome.

Spiralling costs

With costs of raw materials rising together with energy costs rising wages, businesses are faced with the problem of keeping their customers, while having to raise prices. The good news is that people seem keen to dine out again after the pandemic. So, offering an outstanding service will help retain their custom.

Supply chain problems

Supply chain problems post-Brexit and other factors including weather problems can affect deliveries of key supplies. Continuity is key to keeping customers loyal and businesses should look to have more than one supplier. This maintains the flow of goods and keeps prices competitive.

Technology advances

While advances in technology can save time and money, the initial implementation and maintenance of the systems can be a challenge. This could be with managing social media, websites, booking systems, ordering and payroll and many are turning to their accountants to provide support and expertise in this area.

Managing tips and gratuities

The management of tips can be complex, particularly with the latest legislation on how they should be distributed to staff. A tronc system is an arrangement that lets businesses in the sector fairly share staff tips, gratuities and service charges given by customers.

A troncmaster is a person responsible for sharing tips efficiently to staff and independent troncmasters such as WMT are not employees of the business. They can remove the administrative burden of running a tronc, and ensure it remains up-to-date and in line with HM Revenue & Customers policy.

Need advice on implementing a tronc system and related hospitality matters? Contact us.