Brexit to slow F&B growth
Published: 26 July, 2016
Post-Brexit worries hit catering market confidence
Confidence among the leaders of Britainís restaurant, pub and bar groups has plummeted in the wake of the vote to leave the European Union, according to research by CGA Peach. Concerns over consumer confidence, rising product costs and staff availability head the list of short-term and long-term worries for senior executives.
The survey of 80 board-level directors shows that optimism about the market has crashed. Just 15 per cent of operators are upbeat about market prospects in the next six months, down from the 75 per cent that registered market optimism in January, as part of the annual CGA Peach Business Leaders survey.
And when it comes to their own businesses, nearly two thirds (65 per cent) of F&B operators believe that Brexit will have a negative effect on their operations. In all, 24 per cent are optimistic for their own business over the next six months, with 37 per cent are optimistic for the coming two years, while 23 per cent are pessimistic both for the short and long term, with the rest neutral.
CGA Peach forecasts business investment will be affected by the Brexit vote, with 27 per cent of operators saying they are now less likely to consider an acquisition, against just 4 per cent who say they are more likely, and with 21 per cent of bosses planning to reduce investment in their businesses. However, half (49 per cent) do not plan to change their investment plans, and 5 per cent plan to increase investment, with 25 per cent Ďunsureí.