Performance in the hospitality sector in London has been solid in the last year but concerns over recruitment and the negative impact of Brexit could dampen future growth prospects, according to the latest research by top 25 accountancy firm haysmacintyre.
The 2018 haysmacintyre UK Hospitality Index, in association with Propel, reveals steady turnover growth amongst respondents, however, skills shortages were a major concern and are expected to worsen with Brexit. This will particularly impact in London where 25% of the respondents’ staff are EU nationals. The survey reports that 93% of London respondents believe that Brexit will have a negative impact on recruitment and 77% think it will have a negative impact on revenue.
Gareth Ogden, Partner at haysmacintyre, comments: “The major concerns highlighted by London businesses this year were Brexit and the impact on recruitment. The shift in sentiment from last year regarding Brexit has been particularly stark, as indecision over a deal is taking its toll on confidence in the sector and skills shortages are starting to bite.”
The survey revealed some negative sentiments towards delivery services. There was an increase in London operators using a delivery service, with 82% of food-led businesses reporting they have a delivery agreement in place compared to 72% last year. London respondents reported that they derive 9% of turnover from delivery services, however 92% of those operating a delivery service reported that it had a negative or