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News & Press: General

Slash red tape to unleash hospitality’s productivity powerhouse, says sector report

11 September 2019   (0 Comments)
Posted by: Pernille Thomsen
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Productivity levels in hospitality are healthy and improving, but businesses continue to be held back by red tape, according to a report published by UKHospitality and CGA today. The UKHospitality & CGA Future Shock Report examines productivity in the UK’s hospitality sector and the support needed to improve its levels.

The fifth edition of Future Shock highlights the growing importance of technology in creating defining customer experiences and to an industry with an enormous £130bn in annual turnover - bigger than the pharma, automotive and aeronautics industries combined.

As well as research from UKHospitality and CGA, Future Shock features insights from partners Heineken, Bidfood, NFS Technology Group, Alpha Rewards and Tahola providing analysis on:

  • Using the latest technology to improve beer and cider waste reduction
  • Food waste and climate change
  • Promoting staff well-being to improve productivity
  • Driving productivity through analytics and motivation.

UKHospitality Chief Executive Kate Nicholls, says: “The latest Future Shock report shows that businesses are moving in the right direction, but many are swamped by red tape. Businesses need flexibility if they are to thrive, some do not have the room in which to work. Productivity is, of course, a huge concern for all businesses and dynamic businesses at the cutting edge of hospitality, and switched-on businesses, are always looking to improve their levels.”

Karl Chessell, director of food and retail at CGA, says: “Hospitality has sometimes been perceived as less efficient than other industries, but this report makes clear that we are collectively much more productive than we might think—and getting better all the time. The sector is also productive in ways that no metric can demonstrate, with a valuable social currency that makes a positive difference to people’s lives every day.”

“In such a politically and economically unstable time, it is incredibly valuable to have this insight into the value and productivity of the hospitality sector. Hospitality has the potential to play a major part in shoring up the UK’s economy post-Brexit, if the regulatory burden can be lightened,” said Nicholls.


Notes to editors

A link to the report can be found here:

  • UKHospitality is the trade body representing the UK’s hospitality sector, established following a merger approved in February 2018 between the Association of Licensed Multiple Retailers (ALMR) and the British Hospitality Association (BHA)
  • UKHospitality is the authoritative voice for over 700 companies, operating around 65,000 venues in a sector that employs 3.2 million people
  • The body speaks on behalf of a wide range of leisure and ‘out-of-home’ businesses, from FTSE 100 enterprises to niche groups and independent single-site operators
  • For the first time, the sector has a single voice bringing together businesses from all aspects of hospitality; coffee shops, hotels, serviced apartments, pubs, restaurants, leisure parks, nightclubs, contract caterers, entertainment, stadia and visitor attractions
  • Engaging with government, the media and the public, UKHospitality works to develop a robust case on how to unlock the industry’s full potential as the biggest engine for growth in the economy and ensure that the industry’s needs are effectively represented
  • The sector creates £130bn in economic activity and generates £39bn of tax for the Exchequer, funding vital services
  • Hospitality represents 10% of UK employment, 6% of businesses and 5% of GDP
  • Hospitality is the 3rd largest private sector employer in the UK; double the size of financial services and bigger than automotive, pharmaceuticals and aerospace combined

Business Partners