Hospitality and leisure

The leisure and hospitality industry contributes billions to the UK economy every year, with 10% of the country’s workforce employed within the sector. The industry is diverse, encompassing hotels, restaurants, bars, clubs, pubs, sport, and gaming. While each sector is unique in its own way, they all share many of the same challenges.

With a workforce comprised of many low-paid workers, increases to the National Living Wage and employer's National Insurance Contributions have affected most companies operating within the industry, with employment costs at an all-time high.

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Changing consumer preferences

It is not just recruiting staff which is proving to be a challenge, but also enticing customers into parting with their cash. Already faced with changing consumer preferences, a cultural shift away from alcohol-centred activities among the younger generation, and a squeeze on discretionary spending, the current uncertain economic climate has only served to exacerbate these factors. Consumer confidence is at an all-time low, and for an industry which is dependent on consumer faith, this could have potentially disastrous ramifications.

With challenge, comes opportunity

While the hospitality and leisure industry has its fair share of challenges to overcome, there are also huge opportunities to be seized upon. There will always be a market for quality hospitality and leisure venues, as evidenced by consumers shifting away from buying ‘things’ and instead towards paying for experiences. For those establishments with something new exciting, or unique to offer, the audience is still there and eager to spend.

Changing consumer preferences open a door to new and exciting ways of captivating an audience looking for something different. This is not limited to new entrants to the market; however, it does require a willingness to embrace new ways of doing business whether this is in what is being offered, or how these services are being offered.

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Industry specialist help and advice

At BTG Begbies Traynor, our hospitality and leisure industry specialists can work alongside directors and shareholders in order to put a robust, yet flexible plan in place, allowing your company to not just survive, but thrive, under these challenging conditions.

Hospitality businesses in distress

For a leisure, hospitality, or entertainment venue experiencing financial or operational distress, seeking expert help and advice at an early stage is key. Companies operating within this industry typically have high outgoings from staff wages, through to stock, and leases on premises. Should turnover fall, these liabilities can quickly burn through cash reserves, seeing cash flow reduced to perilously low levels surprisingly quickly.

Obtaining advice from an industry specialist gives the company the best chance possible of effecting a successful turnaround. General advice is not enough; it needs someone who understands the sector inside out, and therefore sensitive to the challenges being faced, as well as aware of the potential areas for growth and opportunity.

We are here to help do whatever it takes to get yours or your client’s leisure and hospitality business back on a solid financial foundation. We can look at ways of reducing costs and negotiating with existing creditors to help better balance cash flow.