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News & Press: General

UKHospitality & CGA set out the industry’s road to recovery

20 July 2020   (0 Comments)
Posted by: Pernille Thomsen
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New report from the sector’s leading research consultancy and trade body reveals the scale of COVID-19’s impact and what hospitality can do to reclaim sales

Consumers are returning cautiously to hospitality, but rigorous safety measures, industry collaboration and government support can all speed the sector along the road to recovery.

Those are among the messages from a special new edition in the Future Shock series of reports from UKHospitality and CGA. It presents the most detailed picture yet of the impact of the Covid-19 pandemic on hospitality, and identifies what the industry can do to recover sales and consumer confidence.

The report pools UKHospitality and CGA's latest authoritative data from the industry, highlighting that the hospitality sector accounted for a third of the UK’s entire drop in GDP in March and April, and that only one in six (16%) leaders are optimistic about the prospects of the market in the next 12 months. It also outlines the size of the challenge to bring people back to hospitality, with a quarter (23%) of consumers only returning to venues with caution, and a third (33%) only doing so if they are sure that added precautions were in place.

But the report also identifies green shoots of recovery, and celebrates the success of UKHospitality’s efforts to lobby for government support for the sector. It uses insights from CGA’s research in China and the US to predict crucial changes in consumer habits that are likely to shape the hospitality market in the next few months. They include an increasing desire to use local venues rather than travel to city centres, a new preference for booking ahead, and an emerging polarisation between the value and premium ends of the market.

As well as exclusive research from CGA and views from UKHospitality, Future Shock features insights from report partners Alpha Rewards, Britvic, Molson Coors, OrderPay and Sector Associates, exploring ways for operators to rebuild and strengthen their businesses after lockdown.

Karl Chessell, Business Unit Director, Retail and Food at CGA, says: “The last four months has been the most difficult period of trading that most of us in the industry have ever seen. CGA’s data shows how the pandemic caused a sudden and dramatic downturn in sales and had a seismic effect on consumer behaviour, and the big question now is how quickly the market can recover. There are clearly many tough challenges ahead, but with the backing of consumers and the right support from government, businesses can not just survive the pandemic but thrive in the happier times that lie ahead.”

Kate Nicholls, Chief Executive at UKHospitality, says: “There is still a huge amount of graft to be done if we are to make it through this crisis in one piece, but if any sector can emerge stronger it is hospitality. We have pushed – and will continue to push – hard to persuade UK governments to provide as much support as possible to keep businesses afloat and jobs secure, and have done everything we can to help pave the way for recovery. We have all faced up to some difficult truths and learned some valuable lessons, and we’re pleased to be able to share much of that insight and expertise in this edition of Future Shock.”


Notes to editors

About UKHospitality

  • 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


About CGA:

CGA is the data and research consultancy of choice for the out-of-home food and drinks market, specialising in market measurement, consumer research and location planning.

What sets CGA apart is its unique ability to access the three key types of data (supply, demand and consumer) and then triangulate this data to provide the most complete and accurate picture of anyone in the out-of-home sector.

From its offices in Manchester, United Kingdom, and Chicago, United States, CGA experts work with many of the world’s biggest consumer brands, including drinks manufacturers, consumer brand owners, food suppliers and wholesalers as well as pub, bar and restaurant retailers and government entities.

Founded in 1992, CGA’s mission is to use its phenomenal data and expert insight of the leisure industry to give these brands the competitive edge, and get them where they want to be, faster.

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