With the passing of Blue Monday and the January payslip within reaching distance for many, there is an air of optimism for those engaged in the hospitality and leisure sector in 2023.
It would be ignorant not to acknowledge the ongoing challenges faced by businesses operating in the H&L sector, such as consumers reigning in spending due to the cost of living crisis, staff shortages, and supply chain disruption. However, current forecasts predict inflation will fall back to 3.6% by the end of 2023, which could ease some pressure.
Below we discuss some of the trends and opportunities that allow hospitality and leisure businesses to remain optimistic in 2023, despite the ongoing challenges in the economic climate.
Unsociable hours and low pay have been named as the main reason behind huge numbers of staff leaving jobs in the hospitality and leisure sector following the Covid pandemic. Many businesses report that staff retention could be the difference between staying open and shutting up shop in 2023.
Retaining staff is valuable as it allows the business to keep trading. In order to increase retention rates, many businesses now offer four-day working weeks that staff can opt-in to but still retain their weekly hours and wage, profit-sharing schemes and more flexible working hours with increased salaries.
The grant of ‘pavement licences’ was one of the temporary changes introduced to aid the recovery of ailing cafes, restaurants, bars, and pubs hit by the Covid pandemic. The license has been extended to 30 September 2023, with the possibility of further extensions on the horizon.
The extension of the temporary measure reinforces support for the hospitality sector as the economic impacts of Covid continues to be felt, and keeping the license in place until the end of September 2023 gives some certainty to businesses for the future.
Local authorities, such as West Oxfordshire District Council, have now decided to abolish pavement licence fees allowing bars and restaurants to seat and serve customers without having to pay to do so. It is yet to be seen whether other local authorities will follow suit.
You can read more about this here: Alfresco Drinking and Dining Is Here to Stay.
If you have any questions or would like more information regarding the hospitality and leisure sector and how this may affect your business, please get in touch with our Solicitors, who would be happy to assist.
