More than optimism that unites the food and drink business

A poll conducted for Peach Network's 2020 conference reveals that despite the doom and gloom about the Government, the economy and fluctuating consumer confidence, a sizeable majority of senior executives in restaurant and pub groups remain solidly positive about future prospects.

The eating and drinking out fraternity is a robust and upbeat bunch.Almost three-quarters are either fairly or very optimistic about the long-term market, with only a little over 10% pessimistic.

That, of course, is a pan-industry view. Start scratching the surface and some pressure points start appearing. Nevertheless, that generally positive outlook stretches right across the sector from restaurants to pubs.

Being upbeat about the out-of-home food market is not difficult, despite the stock market's current downgrading of the sector. But the poll also suggests that operators continue to have faith in the future of the drinks market, and talk of its imminent demise is exaggerated.

The survey sample provided responses from a range of businesses from start-ups to established companies and from small operators with fewer than five sites to national chains.

You could call it the innocence of youth, but start-ups in the survey were universally optimistic ' which is probably a prerequisite for businesses in the first years of existence. Bosses of established businesses were a little more circumspect with around 60% being positive and 20% downbeat about prospects. Smaller businesses were marginally more optimistic than bigger groups.

What will not be a surprise is that there is a contrast between wet-led and food-led businesses ' although the gap is not as great as some may have anticipated. Overall, leaders of drinks-led businesses remain positive, with over 50% upbeat, and a third neutral about future trading. However, food-led businesses have more reasons to be cheerful, reflected in the 85% of directors taking a long-term optimistic view.

More important, perhaps, than the difference in confidence between bars and restaurants are the issues that most worry those different sets of businesses.

Across the sector as a whole the big challenges that operators believe will be most important over the next five years are, in order, changing consumer habits, Government legislation, investment, and then environmental and health issues.

For food-led operations, concern over the environment moves up the agenda. For wet-led businesses the immediate threat of the anti-alcohol lobby looms large.

What unites both sides of the industry, apart from the need to keep track of ever-changing consumers, is worrying about Government legislation and interference ' and time tied up keeping politicians off your back is time away from your customers.

Uniting to confront Government would seem a logical step ' pubs, bars and restaurants with a single voice?

Priorities might appear different, but there are also issues that run right across the market. Immigration is an obvious example. The Peach Factory survey shows that immigration is seen as a real positive for the whole industry. Any changes in Government policy could have damaging consequences across the board.

As well as coming together on common issues, why not also provide some mutual support on areas of special interest? Shouldn't restaurants be supporting the pub sector over alcohol, and pubs backing restaurants on health?

While optimism remains in the air, the big question must be how to stay upbeat?