May 2022 - hosp and leisure blog

A summer of love for hospitality and leisure?

Set against a backdrop of supply chain challenges, inflationary pressures, and recruitment woes, hospitality and leisure destinations are having ‘a moment’.

In recent weeks, we have seen updates from Nightcap – owner of The Cocktail Club, Adventure Bar Group, and Barrio Familia – The City Pub Group, Hollywood Bowl Group and Loungers, with a couple of specials on their menus: double-digit growth and a positive outlook.

According to recent figures from the EY Future Consumer Index – a global survey of more than 18,000 consumers – rising costs are an area of concern for consumers, with 52% stating that this is likely to affect their ability to purchase goods. However, while uncertainty around pricing lingers, consumers are placing a higher value on experiences – 42% of consumers state that they plan to spend more in this category.

This trend is echoed by investment bank Liberum, which recently issued a note highlighting that it “expects the more experiential focused operators [within the leisure sector] to outperform as consumer priorities are re-set”.

While macroeconomic clouds may threaten some spending, it’s clear that pent-up demand from consumers—who have had two years of COVID-19 enforced ‘staying in’ —is offering hospitality and leisure operators a moment in the sunshine.