Pub and hotel operator Fuller’s has cautioned that the coming months will likely be tough for hospitality operators, as consumers feel the pinch of swingeing government cuts.
Michael Turner, executive chairman of Fuller’s, said: “With the UK national debt so large and measures to tackle this through tax rises and public spending cuts now being implemented by the new coalition government we continue to be very cautious about the outlook for the UK economy."
Less leisure spend ahead
“We may technically have emerged from recession and the economy may no longer be contracting, however, with the prospect of personal taxation in our target market rising further and disposable incomes reducing there may be less leisure spend available in real terms,” said Turner.
Turner’s warning came as the pub group released full year results to 27 March that showed a 17 per cent rise in pre-tax profits from £22.8m to £26.6m, partly on the back of pub acquisitions. Overall, group revenues were up 8 per cent at £227.7m.
Martyn Leek is news editor of BigHospitality's sister title M&C Report.