Costs are rising. Pressures are increasing. It will lead to one of the greatest periods of change.

The next few months, even the next year, will be filled with growing unease. It is estimated that most households will be between £1-1,500 worse off through just tax and energy rises but inflation too will bite deeply as will the price rises which will naturally be implemented.

Food inflation alone could be far worse than what was estimated just a few months ago. It is becoming a pressure cooker for many as the cost rises will act as another barrier to the return to the office which only serves to increase the pressure on many outlets. It is far from an easy situation for operators.

As we mark the second anniversary of the first, clarity may be a bit easier but not much. Covid maybe less of danger but the numbers are increasing once again with many feeling the strain on their workforces. The return to offices seems to be standing at 55% for a 2-3 day week in the office. This still equates to a fall of over 40% in relative revenues and far worse when one adds into the equation the absence of international business spend. In simple terms, the Industry is having to live off less than half revenues for a 3 year period and this is before the inflation and tax hikes.

Given the last three years, it is little surprise that many leaders feel tired and strained; wondering about their futures and if they still have the appetite for the fight. It is also no surprise that the level of stress issues amongst leaders is reported to have increased significantly in the last two years.

However, it may all act as a catalyst to new ideas and thinking emerging. As one senior player noted last week “ We can't fight the cost increases. We just need to think differently about every aspect of our business. It is like stripping back everything we took as accepted norms and saying to the team “Let's start again and rethink everything”. What can we do differently? Can we purchase directly from the source? Can we change the lighting in rooms so it is all more effective? What new SMART technology can be used?”

It is very likely that the next few years will see new models emerge and a greater change too much which was an accepted norm in previous times. It is already estimated that the number of SMART devices within homes will double over the next five years which will allow for greater efficiency. Prices may go up but the public will become more educated and efficient which will serve to manage those costs. As another bluntly put it last week: “ Listen and learn and you can keep cost increases to a minimum. Carry on as you are and see yourself struggle badly“

It is forecast that the next decade will see the greatest level of change in consumer behaviours ever witnessed. If true, then this will directly impact on spends in hospitality, on the environment, on business, on future generations.

It isn’t going to be an easy period of time but it could be fascinating with much changing, new innovation emerging and new ideas taking hold.