The rising cost of food and ingredients is by far the biggest challenge to restaurant businesses.
That's the finding from a survey of restaurant industry leaders by Allegra Strategies, presented at its restaurant leader summit last week.
More than half (57%) of those surveyed listed food prices as their biggest concern this year, with weak consumer confidence taking second spot for the second year running.
The top 10 business challenges were:
1) Rising food/ingredient costs (57%)
2) Weak consumer confidence (21%)
3=) High labour costs (19%)
3=) Access to capital (19%)]
5=) Consumer price sensitivity
5=) Attracting high quality staff
5=) High rents / property costs
8) Lack of suitable A3 properties
9) VAT increase (13%)
10) Raising profitability (11%)
Research for the survey was conducted in May 2011 and took the form of 118 interviews with leading restaurant executives across the UK, with all major cuisine types covered.
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By Neil Gerrard
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