The latest Business Confidence Survey from NIQ and Zonal has revealed just 21 percent of hospitality leaders are confident about the future of the sector over the next 12 months, as more than a third report a drop in revenue during the last quarter.
The most recent Business Confidence Survey from NIQ and Zonal has revealed that just 37 percent of UK hospitality sector leaders are confident about their business’ prospects over the next 12 months, down from 51 percent in February.
The survey also found that only 21 percent are optimistic about the performance of the sector as a whole, with more than a third reporting that their revenue over the latest quarter was down on 2025, the largest percentage recorded since the beginning of 2024.
“The hits to confidence are partly a result of conflict in the Middle East and resulting shocks to fuel prices, which raised fresh fears of inflation in key areas of hospitality,” the report said. “They also reflect British consumers’ weak confidence, which has reached its lowest level since 2023, according to the GfK Consumer Confidence Barometer.”
“Higher costs have meanwhile squeezed margins, with 34 percent of leaders reporting lower profits. Inflationary pressures are set to intensify, the survey indicated. More than four in five (82 percent) leaders said they are concerned about higher food and drink prices in the next 12 months, while three quarters (75 percent) are worried about increased employment costs.”
More than 70 percent of operators surveyed are concerned about the rate of VAT, while 67 percent cite business rates as a major source of anxiety.
“A dip in hospitality leaders’ optimism was inevitable after geopolitical turmoil and domestic economic concerns in the second quarter,” said Karl Chessell, director of hospitality operators and food, EMEA at NIQ. “The confidence of operators and consumers alike is bumping along the bottom, and relentless pressures on costs are threatening the future of businesses and jobs across the sector.”
“The case for government help on tax, employment and costs is now more compelling than ever. Support would unlock immediate economic benefits by freeing up businesses to invest in their venues and people, and to revisit prices for their guests. Hospitality is at the heart of the UK’s economy, job creation and local communities, and the arrival of a new Prime Minister is an opportunity to give the sector the support it deserves.”
Confidence Q2 26 : Key Facts
37% Optimistic about next 12 months
21% Optimistic about second quarter
16% Single-site operators optimistic for year
36% Revenue in latest quarter fell year-on-year
34% Reported lower profits.
82% Concerned at higher food/drink prices
75% Worried about employment costs
73% Concerned about VAT levels
67% Concerned about rates
Originally published on Coinslot on July 20, 2026. Republished with permission.