Whilst some British hospitality businesses are pessimistic about reaching their profit targets this quarter, London firms are looking to the future with optimism.
This was the finding of accountancy firm RSM Tenon, who surveyed over 100 hospitality businesses in a bid to assess expectations ahead of Q4.
Cited by bighospitality.co.uk, researchers found that 44 per cent of businesses say they won’t reach their revenue targets come the end of the year, with 30 per cent remaining ‘pessimistic’ about their chances of achieving growth. This was up from the 16 per cent that reported the same concern in the previous survey.
Perhaps unsurprisingly, though – thanks partly to the Olympic lure – London pubs, restaurants and event spaces were a lot more confident about a pick-up in revenue. Over half (55 per cent) claimed they were on track to reach their revenue targets in Q4, while 58 per cent said they would reach their profit goals.
The extent to which event spaces have benefited from the Games is yet to be announced, but a recent study from HotStats indicated that hotels in London showed few signs of an Olympic hangover. Property-magazine.eu reported that establishments in the capital managed a profit conversion of 52 per cent of their total revenue – the highest seen in Europe.
Ufi Ibrahim, chief executive of the British Hospitality Association, urged businesses not to dismiss the Olympic effect as hearsay, claiming that a clearer picture of its impact will emerge in the coming years.
“While the Jubilee and the Games did not deliver much profit to the H&L sector (hospitality and leisure), we believe that Britain will reap the real benefit of the vast media coverage of the Games in the next five years and this would be the real legacy of the Olympics for UK hospitality,” she commented.