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Hospitality sector facing rising costs

Business owners in the hospitality sector are about to face rising costs that will affect their day-to-day operations.

A study has found that more than half of leaders in the hospitality sector have concerns about the current state of the UK economy. Up to a tenth of the leaders who took part in the study thought that business confidence is currently much worse than previous years.

Since Brexit was announced, the value of the pound has fallen. This has had a massive impact on the cost of importing goods. The price of supplies essential to businesses in the hospitality sector has rocketed, meaning small business owners are now faced with increased running costs.

One of the most worrying cost increases is that of food imports. Companies are seeing price increase of over 40% on essentials such as cheese and meat. They are faced with the difficult task or trying to absorb the costs, or choosing to pass these onto their customers by raising prices.

Over the past three years, there has been a steady decline in business positivity in the hospitality sector. This year’s report found that there has now been a sharp reduction. In 2016, only 10% of business leaders anticipated future commercial issues. However, this year that number has jumped by over a third to 45%.

A flexible solution such as a business cash advance could help fund your hospitality business so that you can overcome obstacles to success. Not only is this a quick and simple way of raising finance for hospitality businesses, it is also flexible as repayments are made as a percentage of daily credit and debit card turnover. Could Quick Capital's hospitality business funding be the perfect choice for you? To find out more about hospitality business funding, contact us on 0800 3777 402 or visit www.quickcapital.co.uk/contact-us

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