Cost-of-living crisis and staff shortages 'threaten hospitality growth'

The hospitality and leisure sector’s post-pandemic recovery could be severely hampered by the cost-of-living crisis and a widespread lack of staff.

This is according to a report from Barclays Corporate Banking, which shows that 68% of sector operators in Scotland are confident of growth this year, predicting an average 23.6% uplift in revenue compared with pre-pandemic levels. This equates to a £2.1bn rise in annual turnover compared with 2019, and a £3.5bn increase on 2021.

However, the predicted growth could be stifled by soaring supplier costs and a scramble for talent. Hospitality and leisure businesses in Scotland report that their utility bills have already spiked by 36% year-on-year on average.