Takeaway bars and local eateries have become a saving grace for the hospitality industry, according to new data.
Despite the vast effects of the cost of living crisis, local eateries and takeaway bars have offered a glimmer of hope for the sector.
A recent report from the Restaurant Association found that 76 percent of its members had either worse or significantly worse profitability than this time last year.
However, an increase of 4.2 percent for year-on-year sales in the takeaway sector during the second quarter of 2024 has indicated a promising turn for the industry. Local neighbourhood eateries have also had a bounceback, as 24 percent of respondents found their income was on par or greater than the previous year.
Restaurant Association CEO Marisa Bidois said suburban eateries with a strong local connection had found success by building loyal customer bases that value the community aspect of dining locally.
“These venues are thriving because of their close ties with their surrounding areas, which encourages repeat business,” said Bidois.
She added that established eateries with strong brands had also navigated the challenging industry landscape more effectively, and that businesses had used their well-known reputations to retain customer loyalty and ensure they remained top-of-mind for diners looking for a trusted dining experience.
The Association also found that staffing issues had continued to plague the industry. More than 59 percent of employers described the problem as difficult or extremely difficult. Although 78 percent of businesses are full staffed, there has been a drop in recruiting senior roles.
Despite 54 percent of hospitality business owners admitting they were under mental strain, an increase of 12 percent since the last quarter, there is a notable spirit of resilience within the industry. Bidois said the industry has continued to see extraordinary determination.
"We’ve weathered tough times before, and while the trading environment remains difficult, we are prepared to face these challenges head-on and are focused on surviving until 2025 and beyond."
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