The latest Business Confidence Survey from CGA by NIQ and Sona has revealed some surprising but hugely welcoming news confidence among UK hospitality leaders is up 7 percent on Q1, with more than half reporting a year-on-year increase in revenue.
CGA by NIQ and Sona has released the latest Business Confidence Survey, which reveals that 41 percent of UK hospitality leaders feel optimistic about the next 12 months, a 7 percent increase on Q1, and the second successive uptick.
The percentage of those interviewed between late July and early August who felt confident about the sector as a whole also increased to 18 percent, however the figures still represent “historically low levels.”
“Hospitality is a remarkably resilient sector, and these figures suggest leaders have responded nimbly to the many challenges they have faced in 2025,” said Karl Chessell, director of hospitality operators and food at CGA by NIQ.
“However, fast-rising costs are clearly taking a toll on many businesses’ margins. There’s a dangerous ripple effect too, as leaders are being forced to take difficult decisions on employment and investment, while inevitable increases in menu prices are damaging consumer confidence.”
Despite 53 percent of respondents reporting an uptick in revenue year-on-year for the quarter, the survey found much of this was related to increased prices, with the CGA RSM Hospitality Business Tracker finding “broadly flat spending on a like-for-like basis in the first half of 2025.”
Extra operating expenses have forced 84 percent to raise prices since April, while 48 percent have reduced the number of employees.
But here comes the rub: leaner operations may well help counter rising costs such as employment taxes and business rates, and improve the productivity at operations, but raising their own prices will be a challenge to their customers who are also facing inflationary costs and higher energy prices going into the autumn and winter.
And it’s a model that’s already trying to squeeze it’s way into a tight outfit on a night-out.
More than a third of those answering the survey said Q2 profits were down year-on-year, while just 27 percent reported a rise, leaving 9 percent with no cash reserves, and 53 percent with only enough for the next six months.
It’s a tight fit and not a comfortable one at that.
Fragile confidence
Business confidence report said… “Fast-rising costs are clearly taking a toll on many businesses’ margins. There’s a dangerous ripple effect too, as leaders are being forced to take difficult decisions on employment and investment, while inevitable increases in menu prices are damaging consumer confidence…
