The hospitality sector, pivotal to the UK’s economic fabric, faces a £3.4 billion budgetary challenge due to rising payroll costs and business rates. Such financial strains not only jeopardise the industry’s vibrancy but also its capability to invest in future growth, estimated at 6% annually. With nearly two-thirds of the sector’s £5.4 billion growth investment potentially diverted to cover these escalating costs, the urgency for solutions is palpable.
“Hospitality is fundamentally about people, and the spiralling employment and operational costs are putting immense pressure on the sector. Hospitality businesses pay £40 billion in wages and employment taxes, and now, more than ever, we need innovative solutions to navigate these challenges,” says Marcus Jones, Managing Director of Capcon.
Capcon delivers a suite of services designed to alleviate financial pressures and enhance operational efficiency. By offering state-of-the-art inventory management through Reality Stock and bespoke ePos Management systems, Capcon empowers businesses to minimise waste, optimise stock control, and significantly reduce operational costs.
Moreover, Capcon’s Dark Web Monitoring and comprehensive Investigation services ensure that businesses are not only efficient but also secure from potential cyber threats, adding another layer of cost-saving by preventing data breaches and fraud.
As the industry grapples with a £224m hike in business rates and a £3.2 billion increase in the wage bill due to adjustments in the National Minimum Wage and National Living Wage, the call for governmental action is clear. Kate Nicholls, Chief Executive of UKHospitality, advocates for a rebalancing of costs through reduced business rates, employment cost support, and a VAT reduction for the sector. (Read Article – UK Hospitality)
Echoing Kate’s advocacy, Capcon underscores the necessity of strategic internal adjustments alongside policy reforms. “By leveraging technology and specialised services, businesses can significantly mitigate the impact of these external financial pressures. It’s about becoming more strategic in how resources are managed and utilised,” Marcus Jones adds.
