Market Research: What Are the Biggest Barriers to Expanding your Hospitality Operation?
- 40% of respondents saw finding a location as their biggest barrier to expansion
- 60% of respondents feel that funding is their most significant barrier
- 0% of respondents believe that a lack of resources or expertise is an issue
- 0% of respondents thought that a lack of data was a barrier in their operation
Poll 1 and Poll 4 recorded a marked difference in opinion on finance versus location sourcing being a barrier.
When the question moves from setting up a food business to expanding an existing operation, the gap between finance and funding as a barrier widens.
In Poll 1, 40% of respondents felt that funding is a barrier to setting up a food business versus 33% who chose finding a location.
But funding is seen as a barrier by 60% of respondents when expanding an existing hospitality business.
Lenders seem to be increasingly risk-averse when financing established hospitality operators.
High debt ratios caused by months of lost trade during the pandemic leave some hospitality operators in a weak position.
But lean business start-ups with the ability to demonstrate a rapid return on investment are seen as less risky.