When the survey was conducted just before the announcement of Plan B restrictions, nearly three in five (59%) leaders felt optimistic about prospects for the general market over the next 12 months, which was up by one percentage point on September.
However, a third (33%) were making a lower profit than before the coronavirus pandemic, while 13% were only breaking even and 8% making a loss.
Growth plans also presented mixed results as just over two in five (42%) businesses having planned to open new sites in the next 12 months, while (43%) said they would not.
Trading has not become easier
CGA director for hospitality operators and food, EMEA, Karl Chessell said: “These figures show leaders were optimistic about the long-term future of hospitality, but the small movements between the third and fourth quarters suggest trading had not got easier.
“The 'Plan B' restrictions are denting confidence at the worst possible time and comes on top of a host of challenges around staffing, supply and rising costs, it is a reminder that hospitality is not out of the woods yet as many businesses remain extremely vulnerable and will need sustained support from government in the months ahead.”
Figures for fourth quarter trade so far showed four in five (80%) businesses were making a profit, up by 11 percentage points since the third quarter, but current consumer nervousness, and reports of Christmas party cancellations even before the news of 'Plan B', has threatened this recovery.
Omicron has caused doubts across the sector
The poll of multi-site businesses was conducted shortly before the new 'Plan B' restrictions were announced, which have been expected to hit consumer spending over the crucial festive season and pile additional operational pressures onto already stretched businesses.
EMEA, Fourth managing director Sebastien Sepierre said: “While it’s hugely welcome that sector confidence has been high over the last three months, reflected by a boost to trading and a return to profit, the emergence of the Omicron variant has clearly cast major doubt across the sector.
“With many businesses suffering supply chain and labour issues, the prospect of mass cancellations due to a consumer confidence hit is yet another challenge the industry can ill afford. It’s absolutely vital that suitable support is re-introduced to protect businesses and livelihoods at what should be the busiest trading period of the year.”
