News

RSM Tenon has conducted their third quarterly survey which provides a regular snapshot of business confidence across the Hospitality and Leisure (H&L) sector. In this issue we take a look at business growth and our focus for this quarter has been centred on outsourcing; the drivers for and benefits gained.

HIGHLIGHTS:

• Confidence in the business environment has clearly weakened – the proportion of businesses confident about hitting their revenue targets during Q3 fell from 60% to 47%
• Concerns remain over hitting profitability targets – almost half of the businesses surveyed say they will not hit their profits targets
• Weak consumer demand and rising economic uncertainty top the list of worries for H&L businesses
• The UK’s hospitality and leisure sector most typically outsource IT (50%), payroll management and processing (51%), and tax compliance (including VAT) (50%).
• The top drivers for outsourcing include: the ability to focus on the core business (42%), cost reduction (39%), greater efficiency (36%), and access to specialist skills and capabilities (35%).
• Overall, 65% believe that outsourcing has hit their goals; only 10% disagree.

We hope you find the report both enjoyable and informative. If you wish to discuss any of the issues raised in the report, please contact a member of the H&L team or alternatively please do not hesitate to contact Jonathan Perrin, Head of London Hospitality & Leisure, directly on 020 3075 2604.

The survey can be accessed HERE.