A stunning 86% of UK hospitality businesses will likely close in the next three years if their costs do not reduce and their revenue does not rise. Half of these operators are likely to close within 12 months’ time, according to data revealed in the Plates to Profits Report.
The report by UK wholesaler, Creed Foodservice, surveyed directors, owners, managers and chefs in restaurants, hotels and pubs, brings to life the impact the pandemic, rising inflation and increasing food costs, together with the squeezed consumer purse, is having on their operations.
Whilst most businesses (85%) are increasing menu prices to stay combat rising food costs, the majority of operators (83%) fear that customers will feel the pinch and visit less frequently. Case in point: almost half of operators have seen booking numbers decline and 43% say customers have reduced the number of courses they order.
To help control costs, 50% of operators have also streamlined their menus to feature simpler dishes that use cheaper ingredients, and nearly 40% have reduced their hours or stopped serving food on certain days.
But operators can do more to minimise the impacts of rising prices by partnering with Enhance Hospitality. Our team of procurement experts have the experience and know-how to uncover savings even during this high inflationary environment. Over the past three months, we have provided significant savings across product categories for our clients.
Food: 11.5%
Beverage: 10.9%
Cleaning & Consumables: 10.7%
Combined Savings: 11.0%
But that’s not all, once we find the savings, the Enhance team regularly monitor our clients spend by completing best basket analysis and recommending good quality alternatives to further reduce spending.
We understand the strain many hospitality operators are under, and tough decisions that impact service and quality must be made in order to stay competitive and profitable. However, partnering with Enhance Hospitality will help any hospitality operator to ease the burden of higher prices by securing the best deals and improving overall margins.
Contact us today to get started.