According to the latest forecast data released only a few days ago, growth in the eating out market will slow in 2017 to 1.7%, having increased in each of the previous two years by 2% in 2016 and 2.8% in 2015. MCA’s Eating Out Market Data Report carried out research into a number of areas in the restaurant/public house sectors, the headline figure being that in 2017 the overall spend in the U.K. will be in the region of £87.9bn.
The fact that will please most small businesses is that the growth we are seeing is coming about due to a mixture of increased spending and prices, suggesting that the spend per head is higher than ever. In previous years growth has been more of a reflection of expansion by chain brands rather than general increased spending per head. Whilst this expansion has helped the U.K. Economy and job market in general, it has had a lesser effect on stand alone pubs and restaurants.
What the research also shows is that the increased availability of delivery channels such as Just Eat has provided new opportunities to increase sales activity for those restaurants who also provide take-away platforms. Whilst the spend per head is less than what customers will pay for eating in, due mainly to most being food-only orders, the opportunity to increase turnover, especially during quieter mid-week nights, gives restaurateurs the opportunity to increase cash flow.
We can help you and advise on all aspects of tax and trading within the hospitality sector. Please do not hesitate to contact Adam.Moody@raffingers.co.uk
You can also follow us on Twitter for more tips and news surrounding hospitality.