As 2024 draws to a close Saxon Moseley, head of leisure and hospitality at RSM UK, comments on the outlook for leisure and hospitality businesses in 2025:
“There has been a shift in consumer priorities and when budgets get tight, eating and drinking out is often one of the first areas where people cut back* on discretionary spending, so operators will need to continue innovating to entice spending.”
Regular menu updates and the implementation of effective loyalty schemes will both be key measures to encourage repeat custom in a competitive marketplace next year.”
“We know that almost half of consumers are willing to pay more in restaurants for locally sourced ingredients**, so as real wages continue to increase, sustainability will start to influence consumer behaviour further, especially those with more disposable income. Demonstrating sustainable practices could give operators a competitive edge.”
“This year the industry has dealt with increased staff and operating costs and is bracing for further headwinds in 2025 following the measures announced in the Autumn Budget 2024. Set against this backdrop, the outlook for the leisure and hospitality industry will be closely tied to consolidation as operators look to strengthen market position through strategic acquisitions and bring about greater efficiencies in response to the budget measures.”
“In addition, with some hospitality businesses unlikely to remain viable in the face of such cost increases, we expect to see more consolidation in the market through distress deals”
