Peter Backman, managing director of foodservice consultancy Horizons, said: “The UK economy will now face a period of uncertainty which is likely to be intense over the next few days and weeks, but will be ongoing for five years or so as Britain finds its new way in the world.
“Notably for foodservice, the pound will remain volatile and will trade at lower rates than over the last few years. Consumer sentiment will probably remain depressed, costs will be elevated, and there will be some uncertainty over employment because of our reliance on European labour.
“The foodservice sector will be less buoyant than it would have otherwise been – but the impact is likely to be felt differently in different areas of the business. Sectors that could benefit include tourism-related business including hotels and leisure, while restaurants, QSR and pubs could lose out. However, profitability, and therefore investment in the sector, is now under threat.
“Overall we could be facing reduced sales, increased costs and lower demand from the home market and while this could be offset to a small degree by more foreign tourists coming here due to the fall in the value of the pound, the eating out market now faces less growth than we predicted for this year and next.”
Britain voted 51.9% in favour of leaving the European Union and Prime Minister David Cameron has this morning announced that he will be stepping down.
Wetherspoon founder and chairman Tim Martin, said: “The referendum result will enhance freedom and security.
“Some people will now be anxious, but concentrating on these immensely important factors will provide reassurance. Anxiety about the economic effects of independence during the campaign was misplaced.
“The UK will thrive as an independent country, making its own laws, and we will work with our good friends and neighbours in Europe and elsewhere to ensure a positive outcome for all parties.
“The most important factor now is to work together for our mutual benefit. On a practical level, from my experience of running a business, the key factor now is to avoid the appearance and the reality of rushing to ‘do a deal’ with the EU.
“There is plenty of time and the UK is in an immensely strong position. A period of calm, reflection and discussion will be beneficial.”
ALMR Chief Executive Kate Nicholls, said: “The EU referendum will, in time, prove momentous. However, for the moment, business will and must continue as normal. In the months ahead, while the impact of the decision unfolds, the ALMR will work closely with the Government and its agencies, to protect the commercial interests of our members. We are reassured to hear from the Governor of the Bank of England that he is fully prepared to back the UK economy and support British business and that clear messages should reassure consumers, investors and operators.
“While the uncertainties that will result from the referendum’s outcome are unwelcome, the fact is that the UK has spoken about an issue that it holds close to its heart. From here, all parties must move forward in a manner that best serves the UK’s citizens – our teams and our guests as well as our businesses, including the pubs, clubs and restaurants that remain at the heart of our society.”
BBPA Chief Executive, Brigid Simmonds, said: “It is vital that the Government acts quickly to secure economic stability and protect consumer confidence. We will be vigilant to ensure the Brexit negotiations do not harm our exports abroad and the competitive position of beer and pubs in Britain.”
Ufi Ibrahim, CEO of the BHA, said: “The EU referendum question represented a profound moment for the future of our industry. Hospitality and tourism benefits from a flourishing economy and any level of uncertainty will have an impact. The United Kingdom’s withdrawal from the European Union is the beginning of a process which could take years.”
“On Monday 27th June the British Hospitality Association is convening its members, industry and political leaders to discuss economic and political ramifications in the short term. We will be framing a plan to ensure that we have a seat at the table on all negotiations including taxation, immigration and regulation.”
“As we go through this process, the BHA will call upon every politician in this country to do all they can to guard the strong reputation that our industry has built representing a hospitable and welcoming country all around the world. Our industry is one of the key drivers of exports, prosperity and the fourth largest employer supporting 4.5 million jobs.”