Brexit could ruin the UK restaurant industry in 2018
According to new research Brexit could ruin the restaurant and hospitality industry in 2018.
A rising number of restaurants are at risk due to Brexit. Accountancy firm Moore Stephens said that 20% more restaurants are at risk of closure. That is a whopping 14,800 outlets!! According to there study the number of establishments filing for insolvency has increased by 13% since March 2017 and continuing to climb from there.
Moore Stephens has attributed this to many things:
- The value of the pound falling, meaning an increase in the cost of importing goods
- Increasing the national living wage to £7.50 per hour for people aged over 25, thus increasing financial pressure on restaurants that have little of no profit
- The volatility of the restaurant/hospitality industry, making change potentially disastrous and fast acting
What do you think? What are the main factors that you think hinder the hospitality industry’s growth?
The British Hospitality Association has highlighted issues regarding the number of skilled staff within the Hospitality industry falling after Brexit due to new legislation, writing to the immigration minister Brandon Lewis expressing dismay that plans for a new qualification in hospitality will not be introduced until 2022. This is all after Pret a Manger, not a member of the BHA, revealed that only one in 50 job applicants were British.
The worry of a lack of workers with the desire and skill set to fill jobs in an industry is not confined to the Hospitality industry either, Medicine, Healthcare, Egineering and IT just to name a few have all had major figures speak out about this potential disaster for the economy.
However plans are now in place and show that the Hospitality industry is at the forefront of the British economy:
Hospitality today becomes the first major UK industry to present a plan to reduce its dependence on EU workers. At the same time the British Hospitality Association, the leading industry body, has published a report which says that without future EU migration the hospitality sector faces a recruitment crisis, with upwards of 60,000 workers per year needed in addition to the ongoing recruitment of 200,000 workers required to replace churn and to power growth. The KPMG report says that hospitality and tourism will be affected by restrictions to EU migration more than any other sector…..
To read the rest of this article from the BHA……click here: Hospitality jobs Strategy
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