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Highlights
- Chronic staff shortages in the UK have led to shutting down of hotels, pubs, and restaurants.
- Hospitality sector will have to compete with retailers and delivery businesses for staff ahead of Christmas.
- Due to the issues related to staff shortage, the revenues of hospitality sector have been cut down by a fifth as per an industry body’s poll.
Due to the chronic staff shortage in the UK, around a quarter of the pubs, bars, hotels, and restaurants are forced to shut down or stop operations for some part of the week. With around 200,000 vacant positions already, the UK could face an even worse situation with Christmas approaching as retailers and delivery businesses will give a tough competition to the hospitality sector for staff.
Opening hours have been cut down in several pubs and restaurants across the country, while the restaurant kitchens aren’t receiving one in five expected deliveries.
Due to the issues related to staff shortage, the revenues of hospitality sector have been cut down by a fifth, as per a poll conducted by the industry body among its 700 members, which represent 90% of all the pubs, restaurants, and bars in the UK.
According to a different survey for bars and nightclubs, the lack of security staff has hampered their operations, making around 50% of them unable to operate in full capacity.
RELATED READ: Q3 GDP growth slows: Should you bet on hospitality stocks?
Let’s take a look at some of the UK hospitality stocks that could suffer due to staff shortage.
City Pub Group Plc (LON: CPC)
City Pub Group PLC manages a group of pubs with excellent service. The current market cap of the AIM-listed company stands at £114.26 million. It has given a return of 12.50% in 1 year. City Pub Group plc’s shares were trading at GBX 108.00 as of 16 November 2021.
Restaurant Group Plc (LON:RTN)
Restaurant Group plc has popular brands such as Chiquito, Firejacks, Coast to Coast, and Garfunkel's under its umbrella. The current market cap of the FTSE250-listed company stands at £606.68 million. It has given a return of 30.97% in 1 year. Restaurant Group plc’s shares were trading at GBX 92.60 as of 16 November 2021.
RELATED READ: 3 FTSE pub stocks if you are looking to enter the hospitality space
Mitchells & Butlers Plc (LON:MAB)
Mitchells & Butlers plc is engaged in activities like leisure retailing and property leasing, and also operates pubs and restaurants. The current market cap of the FTSE250-listed company stands at £1,417.83 million. It has given a return of 9.76% in 1 year. Mitchells & Butlers plc’s shares were trading at GBX 238.60 as of 16 November 2021.
Young & Co.'s Brewery Plc (LON: YNGA)
Young & Co.'s Brewery plc is engaged in operating and managing pubs and hotel chains across the UK. The current market cap of the AIM-listed company stands at £512.65 million. It has given a return of 42.18% in 1 year. Young & Co.'s Brewery plc’s shares were trading at GBX 1,500.00 as of 16 November 2021.
Loungers Plc (LON: LGRS)
Loungers PLC operates Lounge and Cosy Club brands of cafes and restaurants. The current market cap of the AIM-listed company stands at £282.53 million. It has given a return of 38.89% in 1 year. Loungers plc’s shares were trading at GBX 275.00 as of 16 November 2021.
