UK Hospitality Recovery Unlikely To Be Felt Until Summer

Last week saw hospitality reopen for outdoors service, and if the images in the press are anything to go by, I would say that it has been a pretty successful week for many in the industry. After months of being locked down, there is evidently a pent up consumer demand for hospitality. In fact, a survey of 1,000 UK consumers by EY Future Consumer Index found that 37% are planning on spending more on out-of-home recreational services versus 26% in October 2020.

However, despite what seems to have been a solid first week back, there remains a level of uncertainty amongst consumers about returning to hospitality. EY’s survey found that 65% felt uncomfortable going to a bar or pub, and 57% felt cautious about eating out at a restaurant. These figures have increased from October last year when 52% were unsure about pubs and bars and 37% uncomfortable eating out at a restaurant. Furthermore, over half of those surveyed (55%) believe Covid-19 will only stop affecting their daily lives once the majority of the population is vaccinated.

Therefore, the evidence suggests that although the industry is set to bounce back, this won’t be evident until the summer months when most of the population has received the vaccine. What we are currently witnessing is likely to be just an initial increase in activity, and businesses should be prepared for a potential drop off in the coming weeks. As we move closer to the summer months and consumer confidence builds, we will witness a steady increase in activity to hopefully begin to meet pre-pandemic levels of profitability by the end of the year.

As we have seen throughout the pandemic, the businesses that survive will be the ones that continue to adapt to meet changing consumer preferences. Although challenging times still lay ahead for many in the industry, there is finally hope that better days are on the horizon.