New analysis reveals the resilience of the accommodation and food services industry, experiencing a surge in business numbers over the last five years despite economic challenges.
The number of accommodation and food services businesses in the UK has risen by 17% in the last five years – resulting in an additional 25,000 new companies in the sector. From 2021 to 2022 alone, over 8,000 hospitality businesses joined the industry.
The findings were collated by Business Name Generator using data from the Office of National Statistics’ report on UK business activity. The analysis uncovers the industries that have shown the most growth in recent years.
Hospitality has experienced the fourth largest growth out of all UK industries in the last five years, ahead of sectors including retail, finance and agriculture.
Top 5 industries by business number surge over last five years:
1. Transport & storage – 26.42%
2. Property – 18.81%
3. Construction – 17.23%
4. Accommodation & food services – 16.56%
5. Retail – 13.95%
Despite this increase in UK accommodation and food services businesses, the sector is set to continue facing challenges. According to a report by trade association UKHospitality, up to a third of UK hospitality businesses are at risk of closure despite achieving record sales in 2022.
UKHospitality is calling on the UK government to give the support the sector needs in the upcoming Spring Budget. They highlight the need to tackle causes of price inflation in the industry including energy, recruitment and taxes.
Chloe Chai, spokesperson from Business Name Generator, says:
“The 17% increase in the number of companies in the UK hospitality industry is a positive sign of growth and resilience in the face of economic challenges.
However, as we look ahead to 2023, accommodation and food services businesses must remain vigilant and proactively address financial constraints to continue this upward trajectory. It’s important for companies to seek out new opportunities and adapt to the changing market to maintain this growth and stay competitive in the industry.”