Football fans and business owners in the hospitality sector haven’t got long to wait. The FIFA World Cup isn’t far away, kicking off on Thursday 11 June in Mexico. As well as making sure venues are prepared for those busy five weeks (fully stocked and fully staffed), the company directors should take the time to review the financial health of the business, as it is today, and how to maximise this short-term ‘boost’ in income.

UK Hospitality is still under pressure.

The World Cup isn’t going to magically resolve the external pressures this sector is facing. Cost and margin pressures still persist, with rising employment and operational costs fighting against stretched customer wallets and price sensitivity. These challenges will remain throughout the tournament and beyond, though the hope is that football will help people forget about that for at least 90 minutes (and for as long as England and Scotland remain in the competition!)

An opportunity landing at the right time.

It sounds like a broken record, but the hospitality sector hasn’t had a reprieve since 2020, when we had to socialise at home in our bubbles. Despite the bounce back loan and sector-related reliefs, this industry had to find a route back to profitability (if it could), and that meant increasing costs to the customer and reducing costs within the business. Last year, we highlighted how hospitality businesses weren’t hiring seasonal staff despite strong visitor demand. Business owners are choosing to work longer hours rather than employ, presumably, younger workers.

With group games scheduled for late evening (between 9pm-10pm), and the government approving extended licensing hours for pubs in England and Wales, this World Cup is a perfect opportunity to boost summer trading. Let’s pray that the weather delivers as well!

The World Cup won’t resolve long-term cashflow problems.

Hospitality businesses that are already under financial strain won’t be heading into the second half of the year with those challenges a distant memory. There may be a small financial buffer to ease the pressure on cashflow for a short time (if costs are managed well). The increased turnover from those five weeks could be offset by the additional costs of staffing the late nights and high taxes.

Those businesses that have a full understanding of their financial health before the World Cup, who lean on their professional advisors for guidance, and plan for a variety of scenarios, and the ones that stand to make the most of this seasonal trading.

Head into summer trading with a plan.

Now is the time to be talking to professional advisors. Together with your accountant, we can help you objectively assess where the business is currently, and potentially spot opportunities that you might not have realised were viable options. Early intervention is critical to keeping solutions available.

Our best advice is to reset your budgets and scenario plan for how World Cup trading could impact your bottom line. Once the final whistle is blown on 19 July, you’ll have a clearer idea of what to do next.

Don’t put professional advisors on the bench.

Speaking to a licensed insolvency practitioner doesn’t signal the end of your business or mean you’re giving up on it. Far from it. It means you’re taking a positive step towards getting expert guidance on your options and taking control of the situation before decisions are taken out of your hands.

Call TruSolv on 0808 196 8676 today.