Mon 24th Nov 2025 - Hospitality leaders’ optimism hits five-year low Hospitality leaders’ optimism hits five-year low: Soaring costs of doing business and pressure on consumer spending have pushed hospitality leaders’ optimism down to a five-year low, the latest Business Confidence Survey from CGA by NIQ and Sona reveals. The exclusive poll from the start of the third quarter found just 26% of leaders feel optimistic about prospects for their business over the next 12 months – a drop of 15 percentage points from the second quarter of 2025. The number of leaders feeling optimistic about the future of hospitality in general slipped by five percentage points to 13%. It brings an end to two consecutive quarter-on-quarter increases in the tracker in 2025. Leaders’ confidence in prospects for their business is now at its lowest point since October 2020, when the covid-19 pandemic had decimated trading. The survey shows heavy pressure on operators’ sales and profit margins throughout 2025. While 46% of business leaders report a year-on-year increase in their revenue in the third quarter, this is down from 53% in the second quarter. The majority of leaders report either decreased (25%) or unchanged revenue (29%). Profits have meanwhile been squeezed even tighter than sales. A third (32%) of leaders said their profits have decreased year-on-year – more than the 30% who recorded an increase. A total of 11% of leaders operated at a loss in the third quarter of 2025. Only a quarter (26%) said they now hold enough cash reserves to last them a year – the lowest level in years – while 6% hold no reserves at all. A total of 85% of operators have raised their prices since measures in the government’s spring statement added to the sector’s costs. The average increase in prices is 7.6% – almost double the rate of inflation. More than half (55%) have reduced team numbers and/or the hours available to their staff. The average reduction in hours is 7.3%. Smaller numbers have lowered their spending on employee benefits (23%) and training (19%). Meanwhile, 53% have cancelled investment, 36% have reduced trading hours and 21% have closed sites entirely. Around two thirds of leaders said a VAT reduction for hospitality (70%), a maximum possible discount on rates multipliers (65%) and changes to employers’ national insurance contributions (65%) are among their three most preferred actions from government. Without more support, the majority of leaders said they would have to cancel investment (69%), increase prices (63%) or make further cuts to staff hours (63%).