Thoughts shared with Retail Destination from several of our clients, about their expectations for 2024.
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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 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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The reopening of the F&B sector was epitomised by scenes of overcrowded pub and bars. Not unsurprisingly, however, the picture was a little different for restaurants. Far fewer reported a bumper re-opening, with customers having mixed experiences due mainly to the need to be compliant with Covid-19 related regulations.
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The proposals from Jonathan Downey and his #timeoutuk campaign are a very positive step that could work for all sides over a period. The upside for the owners and investors being occupied space and basic running costs covered through service charge payments, with potentially a full income stream in 2021. The key to their success, however, is convincing the lenders at the top of the tree.
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Even before Covid-19 affected us all, rent and rates liabilities were dangerously high for F&B operators and there had already been some casualties. The Living Wage and Minimum Wage were adding further pressure too, so when coronavirus hit like a metaphorical stop button, the impact of these issues accelerated exponentially, creating a perfect storm of pain felt by everyone in the industry.
While it may not feel like it today, this current period of chaos and uncertainty will pass, or at least lessen to the extent we can start to think about the what next…
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