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Capacity Management | 20% Cuts in Hospitality Capacity to Tackle External Threats

Jim Riley

3rd January 2023

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The external environment facing the UK hospitality industry looks as bleak as the winter weather. So many pubs, restaurants and hotels are looking to cut capacity in the short-term to reduce costs and conserve cash.

A useful article for students here in The Guardian describes how the hospitality industry is responding to a wide range of external threats. These threats include:

  • Rising energy costs
  • Staff shortages and demands for wage increases
  • Falling consumer confidence

How is capacity being cut? By

  • Restricting opening hours
  • Closing for more days of each week

Capacity cuts of around 20% are being reported, just simply to be able to better match supply and demand.

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Jim Riley

Jim co-founded tutor2u alongside his twin brother Geoff! Jim is a well-known Business writer and presenter as well as being one of the UK's leading educational technology entrepreneurs.

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