Why the new Prime Minister must provide lifeline for hospitality sector - Greg Wright

Whoever wins the battle to become Britain’s new Prime Minister must devise a bold plan to provide stability to a sector which should be the envy of the world.

Without intelligent, timely intervention, many businesses could simply fold.

Sam Martin, chief executive of Peckwater Brands, which provides a delivery franchise to kitchen operators, said: “Inflation has the hospitality sector caught between a rock and a hard place.

“On one side, businesses are facing rising costs across their supply chains and operations.

“On the other side, consumers’ finances are under significant pressure, which will likely affect the amount they spend at takeaways, restaurants, pubs and bars.

“Given that the pandemic saw more than 10,000 licensed premises lost during lockdown, with 640,000 jobs lost despite Government support, the UK cannot afford to let this situation escalate any further.”

The Government must outline a clear strategy to get the UK’s economy back on track, as well as a support plan for the hospitality sector, according to Mr Martin.

Mr Martin also believes that data-driven services that improve efficiency and reduce overheads, could help business owners make the most of their existing resources.

He added: “Challenges remain on the horizon for the hospitality sector.

“However, there are options available to the hospitality sector business leaders to take charge of their resources, and their financial circumstances. And in doing so, they may be able to weather this economic storm and safeguard their futures.”

Atul Bhakta, CEO of One World Express, a cross-border e-Commerce solutions provider, said: “It is no surprise to see inflation continuing to spiral.

“And it is important that we do not lose sight of the businesses that are struggling to strike a balance between survival and doing right by the customers.

“ One World Express’ recent research found that more than two-fifths (43%) of UK businesses are committed to not passing price rises on to consumers.

“Whilst a valiant initiative, doing so will likely have a massive impact on such organisations - after all, 60% of businesses anticipate their business will suffer due to inflation.

“Evidently, greater support is needed. The Government must offer clarity on the path forward, affording businesses the confidence necessary to maximise their potential, while picking up the pace on new trade deals to aid in efforts to look to diversify through expansion into opportune overseas markets.

“Naturally, this is not an issue that can be resolved overnight and all of us will feel the pinch to some degree.”

The latest inflation figures underline the importance of providing clarity to businesses for the short-term, while longer-term efforts to ease supply chain problems and rebuild Britain’s trading capacity take shape.

Newly appointed Chancellor Nadhim Zahawi and Bank of England governor Andrew Bailey have both pledged to get inflation under control.

The next Prime Minister will face the in-tray from hell. The new resident of Number 10 must devise a bold strategy which throws a lifeline to business leaders who worry about surviving from one week to the next.

There’ s a simple question that must be answered by all the leadership candidates: How will you help Britain’s hospitality sector survive?

Many firms are reluctant to pass on costs to their customers, but they cannot hold back the tide forever.

The candidates for PM must tell the world how they plan to reduce staff shortages and provide some relief for hospitality firms which have been buffeted by the fiercest economic winds for generations.

Without extra support, some famous names could simply vanish forever.