More than 100 hospitality leaders sign letter to chancellor asking for ‘urgent action’ in Budget: More than 100 hospitality leaders have signed a letter to chancellor Jeremy Hunt asking him to take “urgent action” in his forthcoming Budget to avoid further business failure. Bosses from 112 businesses including Burger King, Stonegate, Big Table Group, Mitchells & Butlers, D&D Group, ETM Group, Loungers, Young’s, Oakman Group, Tortilla, Fuller’s, Pizza Hut and Revolution Bars Group are among the signatories of the open letter. Within it, they and trade body UKHospitality highlight how rising costs, labour shortages and the cost-of-living crisis have led to an unprecedented surge in closures among high-profile names as well as community venues. It coincides with new data, from Zonal and CGA by NIQ, that shows 74% of UK consumers think hospitality needs and deserves more support from the government, while 64% believe hospitality plays a vital role in their communities. The letter calls for a cap on business rates increases from April 2024 at 3%, the introduction of a temporary cut in the lower rate of employer national insurance contributions to 10%, and a review of the benefits of a reduced rate of VAT for the sector to 12.5%. UKHospitality chief executive Kate Nicholls said: “The sector’s message to the chancellor is loud and clear: without further economic support at the upcoming Budget, we risk losing more of our institutions and doing irreversible damage to our world-leading hospitality sector. Extortionate operating costs are making it incredibly challenging to run a profitable business, so it’s vitally important that this is addressed in order to ease ongoing cost pressures and protect businesses from the threat of closure. This sector is one of the UK’s leading employers, providing work to more than three million people, and contributing more than £93bn to the economy each year. It not only deserves the support we are collectively asking for, but it needs it. I sincerely hope that this letter, supported by leading individuals from across hospitality, will be enough to convince the chancellor that his actions on 6 March will be make or break for many venues up and down the country.”

Contract caterers’ sales rose 12% year-on-year in fourth quarter of 2023 but growth slows further: Britain’s leading contract caterers achieved year-on-year growth of 12% in the final quarter of 2023, the latest Contract Catering Tracker from CGA by NIQ and Bidfood reveals. It completed four quarters of double-digit growth last year as contract catering continued to build back from the pandemic. However, it also marks a further slowing of year-on-year increases, from 30% in the first quarter to 18% in the second and 15% in the third. With all four quarters combined, contract caterers’ total sales in 2023 were 18% higher than in 2022. This was despite a drop in the number of outlets served by contract caterers, which at the end of 2023 were fewer than 12 months earlier. The size of the market remains well below pre-covid levels. Karl Chessell, director CGA by NIQ, said: “Last year was one of recuperation for contract catering, which has steadily and impressively rebuilt its client base after the upheaval of covid lockdowns and trading restrictions. It also indicates a welcome return of staff to the workplaces served by caterers.” Debra Morrell, business development controller for business and industry at Bidfood, added: “We’re delighted to see that the sector continues its recovery, although this is tinged with a note of concern as a result of the slight reduction in outlets compared with last year. This has been not only fuelled by the return to offices, which has also brought much needed traffic into city centres, but also the continued buoyancy of leisure, venue and event trade, as well as resilience across healthcare, education and defence sectors. This year, economic challenges will continue to squeeze consumer spending, alongside food inflation, which is still present, although not escalating to the same degree we endured last year.”