Supported by

Kroll’s Business Sentiment Surveyof Restaurants & Hospitality – 2023 Edition

Kroll’s Business Sentiment Surveyof Restaurants & Hospitality – 2023 Edition
Kroll conducted a survey of business sentiment amongst Ireland’s hospitality sector. Thissurvey was supported by the Restaurants Association of Ireland (RAI). 133 business owners
participated in the survey and the results are as follows:

Question 1:
How would you best describe your business?

48%

7%

Licensed restaurant

22%

Hotel restaurant

17%

Gastropub

1%

Coffee shop/café

2%

Quick foodservice/food to go

Wine bar

3%

OthersQuestion 2:
Which of the following best describes your business location?

49%

City/town centre

220%
Rural

19%

Suburbs

12%

Tourist place

Kroll’s Business Sentiment Survey of Restaurants & Hospitality – 2023 Edition

Question 3:
Which of the following daily averages is more applicable to your business?

8%

16%

26%

50%

Less than 25
covers

Between 26 and50 covers

Between 51 and75 covers

Greater than 75
coversQuestion 4:

Question 5:

Which best describe the size of your business?

Is your business a stand-alone outlet or part of agroup/chain?

41%

15%

Mirco (fewer than 10 employees and an annual
turnover of less than €2m)

48%

Part of agroup/chain

85%

Stand-alone outlet
Small (fewer than 50 employees and an annual
turnover of less than €10m)

10%Medium (between 50 and 249 employees andan annual turnover not exceeding €50m)

1%

Large (greater than 250 employees and anannual turnover greater than €50m)
3Question 6:

Question 7:

Do you feel that comments/rankings on
third party websites impacts your business?

What do you anticipate your 2023 trading
performance will be compared to preCOVID-19 levels?

Not Sure

It willbe at thesame level

It willbe below
the level

19%

32%
38%
No

14%

67%

30%

Yes

It will
exceedthe level

Question 8:
What percentage increase have you seen in your energy bills in the last six months?

12%

25%

31%

50%

24%

75%

33%

More
than 100%

Question 9:
What impact will rising energy costs have on your business in the coming 12 months? (select whichever is applicable)

4

45%

36%

30%

80%

7%

We will reduce
our operatinghours

We will
reduce ourstaff countWe will reduce ourproducts/menu
options for customers

We will increase
the price of ourservice/products

OtherKroll’s Business Sentiment Survey of Restaurants & Hospitality – 2023 Edition

Question 10:
Have supply chain shortages/delays had an impact on your business?

26%

49%

13%

12%

Yes, it has had asignificant impact
on our business

Yes, it has had
some impact on
our business

No, it has had
no impact on
our businessNot yet, but we anticipate
it to be a challenge in thecoming 12 months

Question 11:
At present, what challenges are you facing in relation to staffing?

51%

6%

Staffing costs are increasing as a result of achallenging labour market

Reduction in staff count to accommodate
challenges such as energy costs

36%

7%

Facing issues in accessing workforce due toshortage of talent/experienced hospitality staff

No staffing issues at present

Question 12:

Question 13:

Do you believe that you will have to increasestaff wages in order to retain employees?

Do you plan to increase staffing levels in 2023?

84%
5%
11%

Yes
NoNot Sure

30%
49%
21%

Yes
NoNot Sure5Question 14:
Do you believe it will be difficult to recruit/retain staff over the next 12 months?

10%

79%

11%
Yes

NoNot sure

Question 15:

Question 16:

Will your business be adequately resourced
from a working capital standpoint?

Do you expect that average spend per customerin 2023 will be greater than 2022?

Not
sure

Not
sure

14%

28%

37%

52%
Yes

49%

20%

NoNo

Question 17:

Question 18:

Do you plan to refurbish/upgrade yourrestaurant over the next six months?

If yes, how will you fund these costs?

38%
50%
12%
6Yes
NoNot Sure

53%
25%
22%

Cash resources/current
working capital

Bank debt
OtherYesKroll’s Business Sentiment Survey of Restaurants & Hospitality – 2023 Edition

Question 19:
Do you have a tips/gratuities/service charge policy in place?

Yes

71%

No

11%

Did Not
Respond17%

Question 20:
Would your business have survived without government support?

Yes

8%

No

61%

Not sure

14%

Did Not
Respond17%

Question 21:
Do you feel you receive adequate support from your bank/finance provider?

Yes

23%

No

47%

Not sure13%

Did Not
Respond17%
7Question 22:
If your premises are leased, which of the following
statement is the most accurate?

67%

28%

Rent rates
match as they werebefore COVID-19.

Rent rates exceed
as they were before
COVID-19.

5%
Reduced/deferred
rent agreement
still in place.

Question 23:
If it is reduced, how much reduction haveyou received?

70%

10%

17%

20%

13%

More
than 30%

Question 24:
If you availed the Revenue Commissioners
Warehouse Tax Scheme, will you be able torepay this debt within the next 12 months?

17% Yes 12% Not Sure
27% No 26% N/ANot
Respond
17% DidKroll’s Business Sentiment Survey of Restaurants & Hospitality – 2023 Edition

Question 25:

Question 26:

Do you believe the government should introduce
a tax amnesty for the restaurant sector?

Do you feel the reduced 9% VAT rate for thehospitality sector should be retained?

72%
16%
12%

Yes
No

98%

Yes

2% Not SureNot Sure

Question 27:
Do you believe your business is economically viable?

56% Yes
11% No33% Not Sure
Question 28:
Is there a chance your business might close in the coming 12 months?

8%

17%

7%

Yes, there is asignificant chance
this will happen.

Yes, there is asmall chance
this will happen.

Yes, there issome chance
this will happen.

35%

No, not in current
forecasts but weare concerned.

15%

No, this will
absolutely
not happen.

17%

Did Not
Respond

Question 29:
Will you require professional restructuring assistance in 2023?

14%
Yes

42%
No

26%
Not sure17%
Did Not
Respond

9How Can Kroll’s Restructuring Team Help?
Kroll’s global Restructuring team delivers robust solutions for companies facing challenging financial andbusiness problems.
We focus on financial operational restructuring, insolvency and bankruptcy, turnaround and transformation,liquidity management and interim management solutions.
Our experts execute domestic and cross-border assignments from locations around the world in Europe,
the UK, Middle East, Asia Pacific, North America and the Caribbean.
Learn more at www.kroll.com
Please contact a member of Kroll’s market-leading Restructuring team if you wish to confidentially
Discuss your restructuring support requirements in more detail.

Declan TaiteManaging Director+353 14720740
declan.taite@kroll.com

Anne O’Dwyer
Managing Director+353 14720730
anne.odwyer@kroll.com

10Sharon Barrett
Managing Director+353 14720753
sharon.barrett@kroll.com

Kroll’s Business Sentiment Survey of Restaurants & Hospitality – 2023 Edition

Across 32 countries and territories

The Americas

Europe & Middle East

Asia PacificAtlanta

Minneapolis

Abu Dhabi

LondonBeijing

AustinMorristown

Agrate Brianza

Longford

Guangzhou

BermudaNashville

Amsterdam

Luxembourg

Hanoi

BogotaNew York

Barcelona

MadridHong Kong

BostonPhiladelphia

BerlinManchester

Hyderabad

Buenos Aires

Richardson

BilbaoMilan

Jakarta

ChicagoSan Francisco

Birmingham

MunichKuala Lumpur

Dallas

Sao Paulo

BrusselsPadua

ManilaDiamond Bar

SeattleChannel Islands

Paris

MumbaiEllensburg

SecaucusDubai

Pesaro

New Delhi

HoustonSilicon Valley

DublinRiyadhShanghai

Los Angeles

TorontoFrankfurt

RomeShenzhen

Mexico City

Washington DC

Gibraltar

Tel Aviv

Singapore

Miami

Waterbury

Guernsey

Turin

SydneyLisbonZurichTaipei

Caribbean
British Virgin Islands

Tokyo

Cayman Islands

11About KrollAs the leading independent provider of risk and financial advisory solutions, Kroll leverages our unique insights, data and technology to help clients stay ahead ofcomplex demands. Kroll’s global team continues the firm’s nearly 100-year history of trusted expertise spanning risk, governance, transactions and valuation. Ouradvanced solutions and intelligence provide clients the foresight they need to create an enduring competitive advantage. At Kroll, our values define who we are andhow we partner with clients and communities. Learn more at Kroll.com.
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