Labour shortages and supply chain issues impacting the hospitality industry

Date : 28 January 2022

The ONS has released the latest results of its Business Insight and Confidence Survey (BICS).

The hospitality and supply chain sectors are currently reporting the lowest percentage of businesses fully trading (64%). It should be noted that, for hospitality, this is an improvement from 58% reported two weeks ago.

In stark contrast, across the wider economy, 80% of businesses were fully trading. Turnover for 32% of businesses had decreased below expectations for this time of year.

Click chart to enlarge

The hospitality sector is principally struggling with a shortage of labour and supply chain issues. 58% of businesses are reporting that they are seeing decreased turnover compared with expectations for this time of the year.

28% of hospitality businesses are reporting a shortage of workers with restaurant businesses being the key driver of this.

In addition, 26% of the hospitality sector have had to search for alternative suppliers, with 8% reporting that they are unable to access the goods and services necessary.

Since 2020, the BICS has tracked the direction of a GDP estimate for the industries covered fairly consistently. The downturn seen since November, may indicate a future direction of the UK economy.

Click chart to enlarge

More economic news and analysis

Sign up to our bulletin

Our round-up of the latest economic and political news, focused on FMCGs