There were 462 new openings between March and June, driven by growth of casual dining sector
The number of hospitality venues in the UK has grown for the first time in two years.
According to the Nationwide Caterer’s Association (NCASS), this growth is led by a surge in openings of casual dining restaurants.
The association revealed that the sector experienced quarter-on-quarter growth, with 462 new openings between March and June this year.
After years of challenging circumstances that resulted in almost 1,000 closures in the past year alone, the latest figures point to a potential resurgence of the UK hospitality sector.
Despite the surge, NCASS is calling on government to back small and micro businesses by supporting innovation and entrepreneurship, and by removing the barriers to more substantial growth that it says are “baked into the industry”.
NCASS managing director Nick Summers said: “It’s great to see the beginnings of some green shoots of recovery for the hospitality sector after several extremely difficult years for businesses.
“Cost of living meant more discerning and frugal customers, sharp increases in operating costs, coupled with higher borrowing costs and frozen tax thresholds.”
He added that many businesses have been left “struggling for survival or acting as ’tax collectors’, handing 20 per cent of gross revenue as Hot Food VAT for HMRC, while making little of no profit.”
According to Summers, many business owners have “struggled to see through the challenges” of have been forced to close. But he said those that have adapted to the changing market conditions will be “best placed to capitalise on a revitalised hospitality sector”.
