2014s Hospitality Growth Area Predictions

And so another year begins, 2014 and all of that. Here are a few hot trends on the positive side (let's at least be optimistic for the first few weeks of the year!)

The eating–out sector will continue to grow (slowly) as more disposable income is available in many households. 'Casual Dining' outlets will be the main benefactors with consumers trading down from more formal dining; competitive pricing, more varied menus, flexible serving hours and great customer service will be the key. Pubs can certainly take advantage of this forecast.

Beer sales will continue to decline but the huge growth in Craft Breweries will continue (up some 80% in 2013). Local products produced by local people for local consumption, that’s the key, I have a great mate who runs a small craft brewery in the Cotswolds, he and his family team are going from strength to strength, check it out; North Cotswold Brewery. And of course; the chancellors decision on beer duty in the forthcoming budget (increase or not) will have a major impact on sales in 2014.

Coffee sales (in my view: amazingly) will continue to grow and the consumer will become more discerning, so investment in the top range of coffee machines and beans is vital (no more instant cups for £1).

Nightclubs will come under increasing pressure to thrive: new legislation, curtailed hours, late night levies, all conspiring to make it more difficult for them, especially as more pubs offer night club type environments without a door charge!

The 'Grey Pound' will continue to offer great opportunities as the population ages and most live longer and have more disposable income.

The B & B and hotel sector will show growth as corporate business grows and once again the +60 year old market will bring more business as they travel more and more.

The big generic trend will be in the growth of marketing via technology. Cashless payment, bookings via mobile phones, pre-ordering apps, digital marketing tools, loyalty apps, social media marketing, smartphone apps, etc. All designed to make it easier for the customer to find your outlet, see what you have to offer and compare it to others; Book a meal or room or drink, then pay for it!

What will remain the same for success in the hospitality industry? Great service, great products, great standards, great staff, great knowledge, great prices, great toilets, great smiles, great thanks and most of all great training!

A very Happy and prosperous New Year to you all!


Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses

Pub Sales Increase By 10-23% As A Result Of Tax Parity Day

Around 15000 pubs took part in the Tax Parity Day last Wednesday, a campaign (see previous blogs) to seek to have a reduction in VAT for pubs - thereby giving tax parity with supermarkets.

The 15000 pubs reduced their prices on the day so that the new price reflected what would happen if VAT was reduced to 5%, and what do you know? Sales went up!

Many operators recorded increased sales, with Amber Taverns up between 10% to 23%, St Austell up 10% and JDW boss Tim Martin reporting that "Tax Parity Day was an outstanding success with sales up approximately 20%". Many others reported similar success stories.

The theory remains the same; reduce VAT in pubs to give parity with supermarkets and sales will grow. This will create more jobs (700,000 more jobs created in countries that have so far bitten the bullet and reduced VAT) this in turn will increase tax revenue (each extra £3 pint sold in a pub produces £1 in tax and £1 in wages).

A long hard slog, but eventually...??


Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses