Several of our clients shared their thoughts on the challenges and opportunities in the year ahead with BE News, giving their predictions for 2024.
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The market is back, and we’re finally out of the Covid chaos.
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Inflation driving up prices and driving down customer spending power, the staffing crisis, rising interest on loans, energy bills. The rolling coverage of negativity in the market should in theory be putting businesses off investment and expansion. However, the reality of the moment is something entirely different: it’s time for growth.
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Born and bred in London, it’s easy for me to get transfixed by the bright lights of this city; it’s charming, it’s unique, and has cultivated a rich hospitality offer, one of the best in the world. Nonetheless, it’s important to broaden horizons, and not assume that for all its majesty, London’s dining scene cannot learn lessons from the rest of the world. Looking to learn more, I recently took a trip to Dubai.
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There is much talk in the media right now surrounding cryptocurrency, some of it more negative than positive. I’ve written articles on how cryptocurrency will be a force for needed change in the hospitality industry, and how it has the potential to influence numerous markets, no matter how big or small.
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Now Covid is out the way, we should all be fine… but wait.
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Cryptocurrency has taken us on a rollercoaster ride since its inception, but as things start to stabilise, we are set to see huge short term and long term impacts on the hospitality industry, which should be taken note of right now.
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A year ago, I wrote about the redevelopment of Oxford Circus and other initiatives by Shaftesbury and Capco – this seems pretty timely right now given the ongoing conversations around a West End merger. The biggest concern at the time was footfall – we were still in and out of lockdown restrictions, with workers, shoppers and tourists remaining very much absent from the West End scene. Fast forward to today, the West End has substantially recovered, with its vibrancy returned and vitality restored.
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NFT, a simple term that stands for ‘non-fungible token’, brings with it a wave of complexity that encourages a sense of confusion, apprehension, and resistance. NFTs, cryptocurrency and blockchains have all been discussed extensively within the media, but there remain questions as to the ways in which NFTs be applied in the hospitality sector, and in particular, restaurant funding? NFTs have the potential to drive this industry to new heights and be a force for change in a positive way.
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During the covid crisis, there was yet another avalanche of retail casualties on the high street. Instead of single or multiple retail units becoming distressed, it was the turn of the department store. These much larger spaces started to become void – something which we had never seen before. So, what do you do with 100,000 sq ft of space?
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It is about time that we, as an industry, review the process of lease conveyancing. It is a paramount part to our industry yet seems to prolong and delay the possibility of job creation, rents for landlords and further business expansion. We are currently facing a lose-lose situation, one that results in law firms billing more fees and the combined frustration of both parties.
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There is something beneficial about uncertainty, it can have the effect of focusing the mind. This is increasingly evident in the ongoing discussions between landlords and operators in the hospitality sector, as they seek an agreement on rent arrear payments accrued because of the pandemic.
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For the last 18 months, the key word in hospitality and leisure has been “survival”. But as we start to get back to some degree of normality, the sentiment has shifted to “opportunity”. We are seeing more and more activity in the sector, with operators now ready to take advantage of the possibilities the pandemic has created.
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Drive thru’ restaurants are not new. McDonalds pioneered the trend in the UK in 1986, and was soon joined by Burger King, Pizza Hut and KFC, all of whom have had a long-term presence. More recently, the likes of Starbucks and Costa have entered the fray, providing the public with ever more choice and convenience.
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A couple of weeks ago, the country was feeling positive. A first major final for the England football team in over 50 years, a heatwave on the way, and ‘Freedom Day’ just around the corner. With all of this in mind, it would have been very easy to get swept up in the optimism – particularly for the positive impact all of those things could have on hospitality – but as the dust has settled, it is now clear that caution is still required.
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There is an underbelly of inequality in the hospitality sector that is causing incredibly turbulent times. Almost every proclamation from the government swings operators and even entire sectors from the haves to the have nots.
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How great was it to see the shutters came up on those pubs and restaurants when the government signalled that outdoor eating and drinking was possible again. Early winners as a result of re-opening were JD Wetherspoon, Primark and the local barbers, of course.
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We’ve done it!
Hospitality has smashed through two major milestones. First, the opening of terraces to much excitement. And now, the full big opening.
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Since the first lockdown just over 12 months ago, we have seen a major shift in eating habits. The fast forward towards tech-based deliveries, for example, was welcomed and now firmly a part of our lifestyles, despite Deliveroo’s IPO being a disaster. Speaking from personal experience, I welcomed with open arms a well-earned break from home cooking and washing up.
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As firms up and down the country are starting to count the days until they are finally able to reopen, businesses are also starting to count the true cost of the pandemic as they stare at a mountain of debt. While there is hope and elation, there is also a very bitter taste in the mouth as the unfairness of it all becomes increasingly apparent.
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