Will 2018 be the year London's hospitality sector sustains success?

London’s hospitality recruitment specialist, The Change Group, is predicting 2018 will be a year when the sector will work with suppliers and partners to find fresh workarounds and alternatives to increase economic hardship and changing consumer habits.

With uncertainty over Brexit in the spotlight, as well as higher interest rates, business rates and inflation are said to be eroding consumer confidence and spending power, while increasing costs for operators.

Solutions will involve looking at restaurant space more creatively in order to drive greater revenue, as well as exploring new and local provenance and British ingredients.

Recent figures show that net migration from the EU has decreased since the Brexit vote, so the hospitality sector will need to find resourceful ways to attract and retain skilled employees.

Craig Allen, co founder of The Change Group, commented: “The challenges which hospitality companies have faced in 2017 are not going to go away anytime soon.

“We’re already seeing the sector wanting to find ways to work around issues and bring a fresh perspective, especially in terms of the question of recruiting the best talent.”

Although the Bank of England is said to drive several significant challenges for the hospitality sector in 2018, affecting prices and availability of talent will come into play.

Allen continued: “Economic factors such as inflation and business rates are already having a huge impact on hospitality companies in London, alongside significant impact from changing consumer habits.

“Smartphone-empowered millennials now have a high disposable income and want something different from eating out. They love experiences and adventures. The rise in fine dining delivery services means they can get excellent food from many top restaurants at home, making the experience and ambience of dining out key to restaurants’ strategies.

“Additionally, millennials are very well informed about nutrition and diet and are far more conscious about their food requirements than past generations… and this is set to be just the beginning.”

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