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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

Overview

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.

Speak to our experts today…

Charlie

Global Head of Delivery Kitchens
US, Europe, UAE, Asia

Bill

Global Head of Delivery Kitchens
UK & Europe

Ruxandra

Delivery Kitchen Sales Executive
US & Europe