As the hospitality sector comes to the end of another year filled with unprecedented challenges, we ask sector leaders to share their highs and lows of 2022 and hopes for the New Year in a special series of articles this week. Today’s fifth and final instalment features comment from Oakman Group
Peter Borg Neal, executive chairman, Oakman Group
“There can no doubt that 2022 has been a very difficult year for our industry and Oakman has certainly not been immune from the challenging macro-economic environment we find ourselves in. We know from industry data that our sales are holding up relatively well and, versus 2019, our LFLs are +9.8% (for the first 23 weeks of our financial year ending June 2023) and our total sales are +42.3%. However, real inflation (including labour, energy etc) is probably not far off 20% and profits are being squeezed. As a consequence, whilst we are able to service our overheads and debt we are currently unable to commit any growth capital. This is further exasperated by a debt market that is pretty much closed for business and a Government who appear to have no interest in reducing the ridiculously high tax burden on our sector.
“Following the challenges of the pandemic we all hoped for a more benign period during 2022 and it is hugely dispiriting to find ourselves being battered by circumstances beyond our control. The key to a brighter 2023 is undoubtedly an end to the war in Ukraine. If that happens we will see a sudden end to inflation and, hopefully, a rebuilding of investor confidence. We will still be left with our tax burden, labour shortages and the continuing impact of Brexit to deal with. But, it would at least give cause for optimism.
“If there is no end to the war, or there is an escalation, we will face a very grim 2023.”
Will Beckett, co-founder and CEO, Hawksmoor:
”2022 has been marked by inflation, but enough has been written about that without me commenting, so perhaps I’ll talk about people. The winners in this year have been companies who’ve made people their first priority. Customers have not stopped spending; what they have done is stop frivolity and risk … spending money and regretting it is a bad feeling in this cost of living crisis. Restaurants, pubs and bars that deliver what people want excellently and consistently are doing best – no excuses for ‘we’re having a bad time as an industry’ resonate with customers beyond a small amount of sympathy. But even more than customers, operators have had to focus on people. Aside from the labour shortage, there has also been a skill shortage; the challenge is to find people with a great attitude and mindset and train them to your standards, making some accommodations for their lack of experience and ongoing impacts of the pandemic on, for example, their resilience. We’ve employed many hundreds of people, and tried to train them, treat them well, and give them a sense of purpose at work, centred this year on achieving our B Corp status.”
