In our previous Blog - Mid-market firms need better business visibility to successfully adapt to challenging new conditions - we reflected on results from our recent survey, indicating that the global pandemic is challenging organisations to adapt, and in some cases, find new markets in order to remain in business.
We explored this further in our subsequent conversations with F&B business leaders. On the one hand, those who rely solely on supplying to the hospitality sector have suffered significant revenue loss – and must adapt fast to survive. Whilst on the other hand, those who rely on private individuals/retail are experiencing dramatic increases in sales.
In the fine wine trade, where FHL has a unique insight (our product WineSuite integrates with Liv-Ex, the world’s largest marketplace for wine), merchants supplying fine wine to the on-trade (e.g. restaurants), have had to diversify quickly, while off-trade sales soared due to increased consumption at home, alongside a very stable market for fine wine investments, during a period where most other investment markets were volatile.
The good news for the on-trade are green shoots of recovery post lock-down. FHL’s parent company (RSM) produced data in collaboration with CGA and The Coffer Group, showing that pubs and restaurants are recovering. Albeit hesitantly, trading 45 per cent down on the opening weekend after lockdown, with beer the clear winner as pubs currently lead the on-trade recovery.
These observations from the F&B sector are indicative of the wider economy. Covid-19 has had a negative impact on any business that is not geared up for remote working and online transactions. Its impact on businesses that overly rely on certain sectors (e.g. hospitality, events, education) has challenged them to diversify.
Many UK mid-market firms are taking steps to deploy smarter, more flexible online business systems. These tools and the insights they deliver help businesses to successfully adapt to the challenging trading conditions, diversify faster and where needed - implement effective longer-term recovery plans.
To learn more about our research findings, or for more information about how we can help you access the insight you need to successfully adapt your plans, simply click the button below and get in touch.