New report says Brexit could force many restaurant workers to leave the UK

New report says Brexit could force many restaurant workers to leave the UK image

A report published today from YouGov on behalf of Planday suggests that around 10% of workers currently employed in the hospitality sector (bars, restaurants, hotels and other catering businesses) are thinking about leaving the UK due to Brexit.

This figure converts to a sum of circa 330,000 employed staff across the UK which is higher than the anticipated 4% that hospitality managers forecasted.

Based on the report it is suggested that around 3% of hospitality managers will close completely due as a direct result of Brexit. This loss would equate to around £1 billion to the United Kingdom’s economy.Based on the findings of the report it is looking like the hospitality sector will be a one of the sector’s to face the economic brunt of Brexit.

Hospitality managers are already finding recruitment tougher since 2017 with around 18% reporting that recruitment is much harder and 16% suggesting that future recruitment will be much harder for their business over the coming years.

This causes a challenge for the sector as the report suggests that there could be false confidence based on forecasted figures. Immigration concerns seem to be at the top of the list with many workers fearful of their future legal status. Other concerns based on the findings suggested that workers were worried about pay decreases.

It seems clear that the sector will need government support with over 30% of managers suggesting the government intervene and offer work permits post-Brexit and support for their business. Staff are worried about pay decreases and longer hours and managers are worried about pay increases and less staffing options. It is clear there is confusion and fears the closer we get to Brexit.

With over 50% of workers who added to the report suggests that Brexit has made the UK a less welcoming place to work and live.

Managers will need to embrace the change and forward plan now. Invest time in looking at new training, potentially targeting an alternative demographic staff such as older employees, investigate new working methods such as greater flexibility and so on.

In 2020, the COVID-19 pandemic saw mass cancellation of events, sports and social occasions and chaos to the travel sector with practically all flights cancelled for months.  In addition to the cancellation of many events and travel there remains social distancing requirements that have had a major impact on the hospitality and leisure industry. This sector contributes 5% of national GDP and accounts for 10% of employment in the country, according to UKHospitality.

We will have to wait to see the outcome with COVID19 and Brexit having a dual impact on the sector.  In the meantime for those businesses who are trading we are helping many find the funding they need with our Merchant Cash Advance product.

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