Recruitment challenges exacerbated by Brexit

It said that staff shortages have been an impact felt more by hospitality leaders, applicable to almost two thirds (63%) of those surveyed.

Overwhelmingly,  75% of food and drink leaders believe that the UK Government should be supporting businesses on overcoming Brexit challenges. 

The survey also found that 89% of surveyed hospitality business professionals agree or strongly agree that the next 12 months will see an increase in casualties among eating out brands.

Merger and acquisition activity

The same number at 89% agree or strongly agree that more merger and acquisition activity is inevitable in the eating out market.

Those in the eating out market found that they overwhelmingly reported “extremely challenging trading conditions” with the impact from all legal coronavirus restrictions being lifted yet to be observed. 

However, the majority of those surveyed (78%) are expecting trading conditions to improve across the next 12 months, up from just 39% at October 2020 as the relaxation of restrictions has been introduced.  

Significant challenges

Commenting on the results, Katie Prowse, senior insight manager at Lumina Intelligence said: “Brexit, coupled with heavy restrictions on movement caused by the pandemic, has resulted in significant resource challenges for businesses across the UK food and drink industry. 

She added: “Business leaders want to see the government do more to support. Issues surrounding the UK’s departure from the EU including trade deals, processes around imports and exports and EU worker rights in the UK are all the remit of the UK Government and so it is vital  it plays a leading role in aiding, communicating and working alongside businesses through the transition.”

The survey was carried out from June to July 2021 and data has been compared to the last wave, collected in October 2020. 

It is based on responses from c.60 leaders working in senior management positions across hospitality and grocery.