Here are key insights from the expert speakers.
1 ‘Reasons to be economically positive’
The scene-setter for the Leaders Summit came from HSBC’s global economist James Pomeroy—and he was upbeat about prospects for the economy. After a tough few years, inflation and interest rates are under control and pay is rising, so people should start to feel more money in their pockets. “There’s still a lot of uncertainty… but despite all the problems there are reasons to be cautiously optimistic about the next few years,” he said.
2 ‘Hospitality is a polarised market’
Peach 20/20’s co-founder Peter Martin echoed the tone in his whistlestop tour of the forces shaping hospitality. CGA by NIQ data has shown modest sales growth and stability in outlet numbers this year, though understandably business leaders’ confidence has dipped lately. Across all three of these metrics, well-resourced and financed companies are proving more resilient than smaller ones. “It’s a polarised market… the pain has mostly been felt among independents, and chains have been able to cope better.” Consumers are split too, between those feeling the pinch and those spending freely. Their loyalty is fragile but nearly all of them still want to go out for the special experiences that only hospitality can provide. As he said: “People hate being miserable.”
3 ‘The Budget doesn’t make sense’
While the long-term outlook is good, the recent Autumn Budget has put a severe dent in optimism. UKHospitality has set out the damage of the extra tax burden, and chief executive Kate Nicholls said some positive Budget results like business rate reform and high street strategies had been overshadowed by the hikes in National Insurance contributions. “The government just didn’t do its sums properly… Labour recognises the role of hospitality but then you get the kick of the budget. It’s a dislocation and it doesn’t make sense.” UKH is lobbying hard for a rethink and Nicholls urged any businesses that isn’t yet a member to sign up and add their voice.
4 ‘We need a Gen Z mindset on tech’
Peter Martin’s overview flagged one of the big recurring themes of the Leaders Summit: technology. It’s the route to better guest experiences, more efficiencies and better productivity and profits, and the emergence of Artificial Intelligence (AI) is extending the possibilities. “We’re in a digital world and we have to adapt to technology,” Martin said, emphasising that it’s a non-negotiable for young adults in particular: “We need to get into a Gen Z mindset about tech.”
5 ‘Technology needs brand filters’
The value of tech was picked up in a Summit panel session on innovation. While it can transform a business, Bill’s managing director Tom James said it had to respond to a genuine need and slot into a company’s culture and values. “Running tech through your brand filters is absolutely crucial.” Gavin Adair, CEO at Rosa’s Thai, pointed out that innovation is about much more than tech, and that digital interactions shouldn’t replace the human touch of hospitality: “Don’t lose sight of why we exist in the first place.” Above all, tech has to work and be properly integrated into operations. “It’s easy to be seduced [by a tech solution]… but if it makes people’s jobs harder it’s going to bomb,” warned Sarah Venning, global chief digital and data officer at Merlin Entertainments. Business leaders can learn more about role of technology through the Hospitality Sector Council, which is running a Hospitality Innovation Day.
To read more insights from the Peach 20/20 Leaders Summit, click here.
