1 ‘Reasons to be economically positive’

The scene-setter for the Leaders Summit came from HSBC’s global economist James Pomeroy—and he was upbeat about prospects for the economy. After a tough few years, inflation and interest rates are under control and pay is rising, so people should start to feel more money in their pockets. “There’s still a lot of uncertainty… but despite all the problems there are reasons to be cautiously optimistic about the next few years,” he said.

2 ‘Hospitality is a polarised market’

Peach 20/20’s co-founder Peter Martin echoed the tone in his whistlestop tour of the forces shaping hospitality. CGA by NIQ data has shown modest sales growth and stability in outlet numbers this year, though understandably business leaders’ confidence has dipped lately. Across all three of these metrics, well-resourced and financed companies are proving more resilient than smaller ones. “It’s a polarised market… the pain has mostly been felt among independents, and chains have been able to cope better.” Consumers are split too, between those feeling the pinch and those spending freely. Their loyalty is fragile but nearly all of them still want to go out for the special experiences that only hospitality can provide. As he said: “People hate being miserable.”

3 ‘The Budget doesn’t make sense’

While the long-term outlook is good, the recent Autumn Budget has put a severe dent in optimism. UKHospitality has set out the damage of the extra tax burden, and chief executive Kate Nicholls said some positive Budget results like business rate reform and high street strategies had been overshadowed by the hikes in National Insurance contributions. “The government just didn’t do its sums properly… Labour recognises the role of hospitality but then you get the kick of the budget. It’s a dislocation and it doesn’t make sense.” UKH is lobbying hard for a rethink and Nicholls urged any businesses that isn’t yet a member to sign up and add their voice.

4 ‘We need a Gen Z mindset on tech’

Peter Martin’s overview flagged one of the big recurring themes of the Leaders Summit: technology. It’s the route to better guest experiences, more efficiencies and better productivity and profits, and the emergence of Artificial Intelligence (AI) is extending the possibilities. “We’re in a digital world and we have to adapt to technology,” Martin said, emphasising that it’s a non-negotiable for young adults in particular: “We need to get into a Gen Z mindset about tech.”

5 ‘Technology needs brand filters’

The value of tech was picked up in a Summit panel session on innovation. While it can transform a business, Bill’s managing director Tom James said it had to respond to a genuine need and slot into a company’s culture and values. “Running tech through your brand filters is absolutely crucial.” Gavin Adair, CEO at Rosa’s Thai, pointed out that innovation is about much more than tech, and that digital interactions shouldn’t replace the human touch of hospitality: “Don’t lose sight of why we exist in the first place.” Above all, tech has to work and be properly integrated into operations. “It’s easy to be seduced [by a tech solution]… but if it makes people’s jobs harder it’s going to bomb,” warned Sarah Venning, global chief digital and data officer at Merlin Entertainments. Business leaders can learn more about role of technology through the Hospitality Sector Council, which is running a Hospitality Innovation Day.

6 ‘Data can give you a highly refined gut’

The innovation panel also covered the need for better use of data—an area where hospitality lags many other sectors. The goal is to properly digest data before combining it with well-honed instincts, Sarah Venning said. “I’m a believer in the highly refined gut… [using data means] you can focus your judgement on a far narrower range of choices rather than taking a scattergun approach.” And data shouldn’t be a dead hand on operations, added Jane O’Riordan, chair at Caravan, Red Engine and Turtle Bay: “We’re not taking the hospitality out of hospitality—we’re enhancing it.”

7 ‘The ability to cross borders adds value’

Many mature British restaurant and bar brands are now looking overseas for growth, the Summit’s ‘International Rescue’ panel heard. Session chair Will Beckett’s Hawksmoor business is a top example, with a just-opened Chicago restaurant adding to a phenomenally successful New York site. Also going further afield is The Alchemist, and CEO Simon Potts said: “Growth is baked into the business, and sooner or later we knew we’d run out of white space in the UK—so we thought we’d get out in front of it.” Global expansion is attractive to investors, agreed Éadaoin McDonagh, chief operating officer at White Rabbit Projects: “The ability to cross borders certainly adds value.”

8 ‘You have to be ready to adapt’

But there’s no guarantee of international success. It’s critical to get to know locations, said Simon Potts: “You can’t replicate local knowledge… you have to accept you’re never going to know it all and will have to roll with a few punches.” Clay Dover, chief executive, president and taco maker at Velvet Taco, which is preparing to launch in the UK, added: “Sometimes you get brands you think will be successful in the US and they’re just not. There are different perceptions in the countries you land in… so you have to be ready to adapt.” Éadaoin McDonagh admitted: “Things go wrong all the time… you need to be agile and have enough cash to deal with that.” Leaders interested in international expansion can get up close to the US market on the Atlantic Club’s trip to Denver in June 2025.

9 ’Ultimately it’s a people business’

A panel of leaders stressed the importance of finding and motivating top hospitality talent. “Ultimately we’re a people business,” pointed out Carol Campbell, managing director of managed estate at the Stonegate Group. Roy Ellis, CEO at Mission Mars, said COVID had been a chance for his business to massively improve retention. “We think every 10% reduction in turnover adds about half a point to our margins… and we use that to invest further [in teams].” And Caravan founder and CEO Laura Harper-Hinton highlighted the value of good culture and face-to-face fundamentals. “We’re all focused at the moment on going back to basics… to delivering hospitality and being more present, rather than running it through the boardroom.”

10 ‘Optimism isn’t optional—it’s essential’

The Leaders Summit finished as it started—on a note of cautious but determined confidence. “Optimism isn’t optional—it’s essential. Even if the government is doom and gloom, we have to bring the joy,” said Laura Harper-Hinton. “I do think consumers will come out and spend more next year,” added Alasdair Murdoch, CEO at Burger King UK. Carol Campbell concluded: “There’s lots to be optimistic about… We’re in the business of happiness and connecting people—and that’s what we’ve got to stay true to.”

Peach 20/20 thanks its headline partners on the 2024 Leaders Summit: Access, CGA by NIQ, Diageo, Fourth, Nutritics, Sona and Zonal; premium partners Chapman Ventilation, Crunchtime, Toast and Uber Eats; event partners Airship, Bird & Bird, Brakes, Cardlytics, Coca-Cola Europacific Partners, Feed it Back, Freeths, Harri, Kitch, Lucky Saint, Mapal, The National Restaurant, Pub & Bar Show and Toggle; and charity and association partners Be Inclusive Hospitality, Only A Pavement Away, Tim Bacon Foundation and UKHospitality.