10 Minutes News for Hoteliers 10 Minutes News for Hoteliers
  • Top News
  • Posts
    • CSR and Sustainability
    • Events
    • Hotel Openings
    • Hotel Operations
    • Human Resources
    • Innovation
    • Market Trends
    • Marketing
    • Mergers & Acquisitions
    • Regulatory and Legal Affairs
    • Revenue Management
  • 🎙️ Podcast
  • 👉 Sign-up
  • 🌎 Languages
    • 🇫🇷 French
    • 🇩🇪 German
    • 🇮🇹 Italian
    • 🇪🇸 Spain
  • 📰 Columns
  • About us
10 Minutes News for Hoteliers 10 Minutes News for Hoteliers
  • Top News
  • Posts
    • CSR and Sustainability
    • Events
    • Hotel Openings
    • Hotel Operations
    • Human Resources
    • Innovation
    • Market Trends
    • Marketing
    • Mergers & Acquisitions
    • Regulatory and Legal Affairs
    • Revenue Management
  • 🎙️ Podcast
  • 👉 Sign-up
  • 🌎 Languages
    • 🇫🇷 French
    • 🇩🇪 German
    • 🇮🇹 Italian
    • 🇪🇸 Spain
  • 📰 Columns
  • About us

UK’s biggest restaurant groups “in good financial health” despite dip in profits

  • Restaurant
  • 21 October 2024
  • 2 minute read
Total
0
Shares
0
0
0

This article was written by Restaurant Online Magazine. Click here to read the original article

image

Overall profits fell by 1% to £244.1m in 2024, down from £246.5m the previous year, according to new research by accountancy group UHY Hacker Young.

This was despite turnover at the UK’s top 100 restaurant groups increasing sharply in the past year, reaching £9.6bn in September 2024, a 21% increase from £7.9bn in the previous year.

However, the benefits of that increase in turnover have been largely eroded by the impact of inflation on food and drink costs and a higher interest burden on debt, says UHY Hacker Young.

The results are described by UHY Hacker Young as ‘a creditable performance’ considering the challenges the sector has faced from the cost-of-living crisis and years of losses the sector has suffered from during the pandemic. The top 100 UK restaurant companies reported a loss of £673m in 2021, it says.

“The sector’s ability to maintain profitability despite the impact of the spike in inflation and weak consumer confidence is a very encouraging sign for the hospitality sector,” says Martin Jones, partner at UHY Hacker Young.

“It highlights the resilience of restaurant groups in adapting to both volatile trading conditions and rising overheads, which have had a huge impact on the industry overall.”

The return to what UHY Hacker Young calls ‘reasonable levels of profits’ among the UK’s biggest 100 restaurant groups comes after years of cost cutting that has seen many chains shrink their number of venues and cut staff numbers, shift more sites to suburban areas to reduce overheads, and renegotiate lower rents with landlords, it says.

Eight contemporary bathrooms coloured with soothing shades of green
Trending
Eight contemporary bathrooms coloured with soothing shades of green

This lower cost base has enabled many restaurant companies to maintain profits, despite the cost-of-living crisis leading to flat or falling expenditure on restaurants when adjusted for inflation.

“The industry has done a good job of stripping out excess capacity. That has been a really painful process for everyone concerned but the industry is in a better place for it.”

“Over the last few years, many operators in the sector have become much more focused on their cost base rather than just hoping that a growth in sales would eventually repair their margins. As a result many of the UK’s biggest restaurant groups are now in good financial health.”

“With overheads beginning to ease and softening inflation, UK restaurant groups can now focus on growing their revenue, which understandably is what restaurateurs have much more passion for.”   

Please click here to access the full original article.

Total
0
Shares
Share 0
Tweet 0
Pin it 0
You should like too
View Post
  • Categorizing...

Hotel Market & Feasibility Studies: Connecting Vision with Viability in Untapped Markets

  • Automatic
  • 3 June 2025
View Post
  • Categorizing...

RateGain Introduces REMO: Its First AI Employee Focused on Empathy and Inclusion

  • Kushal Walia
  • 3 June 2025
View Post
  • Categorizing...

Managing Hotel Labor Costs Today

  • Automatic
  • 2 June 2025
View Post
  • Categorizing...

Why Technology Has the Hotel Business Bootstrapped

  • Automatic
  • 2 June 2025
View Post
  • Categorizing...

Rosewood Hotel Group appoints COO and VP of operations for EMEAC region

  • Tatiana Valenzuela
  • 2 June 2025
View Post
  • Categorizing...

Antoine Serhan appointed hotel manager of New York’s The Barclay

  • Tatiana Valenzuela
  • 2 June 2025
View Post
  • Categorizing...

Despite global headwinds, owners and developers remain optimistic, finds Wyndham report

  • Denis Stackeusky
  • 2 June 2025
View Post
  • Categorizing...

Hyatt’s Inclusive Collection opens new resort in Bulgaria’s Sunny Beach

  • Denis Stackeusky
  • 2 June 2025
Sponsored Posts
  • Influence Society Publishes Q2 Edition of Societies Quarterly for Visionary Hoteliers

    View Post
  • Case Study: Refinery Hotel Redefines Revenue Management with LodgIQ

    View Post
  • Day & Night: The Bold Rebranding Powering Shiji’s Presence in Global Hospitality Tech

    View Post
Last Posts
  • Marriott Opens First-Ever StudioRes Branded Hotel in Fort Myers, Florida
    • 3 June 2025
  • Michigan Central to Bring New NoMad Hotel to Detroit
    • 3 June 2025
  • LodgIQ Sponsors the HSMAI Commercial Strategy Week 2025, Co-located with HITEC in Indianapolis
    • 3 June 2025
  • Berlin Hotel Market Spotlight YE Mar 2025
    • 3 June 2025
  • RoomRaccoon Introduces RaccoonRev Plus: AI-Powered Pricing To Make Independent Hotels More Profitable
    • 3 June 2025
Sponsors
  • Influence Society Publishes Q2 Edition of Societies Quarterly for Visionary Hoteliers
  • Case Study: Refinery Hotel Redefines Revenue Management with LodgIQ
  • Day & Night: The Bold Rebranding Powering Shiji’s Presence in Global Hospitality Tech
Contact informations

contact@10minutes.news

Advertise with us
Contact Marjolaine to learn more: marjolaine@wearepragmatik.com
Press release
pr@10minutes.news
10 Minutes News for Hoteliers 10 Minutes News for Hoteliers
  • Top News
  • Posts
  • 🎙️ Podcast
  • 👉 Sign-up
  • 🌎 Languages
  • 📰 Columns
  • About us
Discover the best of international hotel news. Categorized, and sign-up to the newsletter

Input your search keywords and press Enter.