Labour shortages and supply chain issues impacting the hospitality industry

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.

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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.

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