The hospitality industry is among the sectors facing the biggest debt concerns in the UK this autumn, according to new research.
Following recent ONS figures, which show UK debt has reached 100% of GDP, the highest level since 1961, the prospecting firm Sopro analysed ONS data to reveal the industries most impacted by concerns about debt this autumn and offered tips on how businesses can overcome these challenges.
Accommodation and food services came second in the list behind real estate, with 8.6% of businesses having low confidence about meeting their debt obligations. This could be due to the colder months signalling the rise of energy consumption and costs. As energy prices rise due to inflation, operational costs will likely soar for businesses in the sector. This can make it challenging for businesses to continue generating enough cash flow to meet their financial needs.
A third (33.3%) of accommodation and food services businesses are also facing increasing staffing costs, the highest rate of any industry. With Autumn marking the beginning of another busy season for the industry, demand for hospitality services increases during holidays like Halloween and Christmas. This means that businesses are required to hire additional, often temporary, staff at higher rates, adding to the already high financial burden of payroll.
Steve Harlow, chief sales officer at Sopro, commented: “Businesses can survive the challenging autumn months by tightening their sales and marketing tactics to generate new business, keep customers engaged, and maintain a steady stream of sales to beat the financial downturn.”
Harlow’s recommendations include maximising prospecting efforts through targeted outbound marketing activities, such as emails, phone calls, and social media messaging. He also suggests incorporating seasonal messaging into your marketing and analysing your sales funnel in order to make swift adjustments for the best chance of successful conversions.
Harlow concluded: “By fine tuning these tactics, you can draw in more customers and maintain stability, allowing you to navigate the autumn season with more confidence and success.”
