Hospitality Bites Back
CESA associate member Shire has undertaken a survey of the industry which gives a better understanding of what those in the hospitality sector are experiencing right now, and even more tellingly, what they’re anticipating for the future. Shire Business Group has broadened the scope of its quarterly “Business Barometer” survey and shares here the findings with CESA members.
Shire has a customer base of more than 50,000 UK businesses. Whilst its reach is wide, a significant number of these are pubs, restaurants, hotels and other catering and leisure facilities. In the third quarter of 2012 it provided almost £1m worth of leasing in this sector alone – an increase of over 28% on the same period in 2011.
On a quarterly basis, as well as crunching the numbers and analysing the trends, Shire conducts online and telephone surveys of a significant sample of customers to determine the “feelings behind the figures” and help the Group better understand the market.
This latest survey, focussing wholly on the hospitality sector, discovered that, despite the doom and gloom, most respondents are optimistic about what the future holds.
Shire Business Group invited a tranche of its customers across the hospitality sector, including pubs, restaurants and hotels, to feedback their views on the state of the economy and its effect on their future outlook. While the majority of the 100 plus that took part in the survey reported that their business had performed “about the same” this year as last, a convincing 72% believe that things will improve over the next six months and nearer 80% of those spoken to were optimistic of improvement over the next 12 months or more.
Few of those surveyed felt that the much vaunted Euro crisis impacted on their business and, perhaps surprisingly, 54% of respondents claimed that they were “not concerned” when asked for their feelings about the state of UK banking.
However, aware of the continuing need for financial investment whether in new premises, staff and training, equipment or refurbishment, many were vocal regarding the hurdles they face when approaching traditional sources for the funding needed for growth. This despite the Government’s publicised recognition that development within the SME sector is key to economic recovery, and its pledge to channel funds to these private enterprises through the banks.
Overall it seems that the sector remains positive, that the expectation is for marked improvement and an anticipated turnaround over the next 12 months, and an awareness that capital expenditure and investment are key to this.
Martin Smith, Shire’s Chairman, summed the findings up,
“The sector’s recognition that businesses need to continue to invest if they are to grow, and that staying still in this climate simply isn’t an option, has to be a comfort to CESA members, just as it is to us as a finance provider. The facts and figures, coupled with what our customers are telling us, give us reason for optimism. We’ll keep asking the questions, monitoring the responses and ensuring you stay informed!”
To learn more about the results of the survey, or to find out more about how leasing can help you business, call 01827 306 555 or email email@example.com