The hospitality sector has suffered a number of set backs of late, but DERIN CLARK finds the sector in resilient mood

Last year, the region's pubs, restaurants and hotels were struggling with the economic fall-out from Covid.

Twelve months on, the same industries are now reeling from the impact of the cost of living crisis, as consumers dramatically reign in their spending.

But amid the gloom, there is some optimism - provided certain challenges can be addressed.

A key issue that continues plaguing the sector is the recruiting - and retaining - of skilled staff.

Even before the pandemic saw a skills shortage across businesses, hospitality's reputation for long, unsociable hours, coupled with poor pay, put many workers off a career in the sector.

A report from Economic Insight released in 2019 highlighted that, compared to all other UK industries, hospitality and tourism had a high number of job vacancies as a proportion to total jobs - at 6pc compared to 4pc.

Meanwhile, during lockdowns a high number of workers left the sector to retrain for different careers.

Hospitality is also facing more competition from other industries to recruit staff and 'the great resignation' in the aftermath of the pandemic has resulted in a skills shortage across many businesses.

Figures released by the Office for National Statistics (ONS) this month showed that the unemployment rate had fallen to its lowest level since February 1974 - standing at 3.5pc.

Last year, an ONS report highlighted that hospitality businesses were more than twice as likely as other industries to be experiencing challenges in filling vacancies.

It stated that between August 23 and September 5, 30pc of hospitality firms said that vacancies were more difficult to fill than normal - compared with 13pc across all industries.

Although hospitality recruitment was difficult prior to Covid, Tom Ginn, founder of Norwich recruitment specialists Bread Hospitality, said that the pandemic "kicked hospitality into gear" and bosses in the sector began to change how staff are treated.

"This is something that has been coming for a few years," he said. "The industry has always struggled to attract people due to a reputation of long hours, terrible pay and not the best working conditions."

Changes made in the industry include improvements in working hours, pay increases and the offering of more incentives.

"Everyone also realised it has to be fun working environment," Mr Ginn added.

"We work with [pub chain] the Chestnut Group and they realised that working on Christmas Day wasn't fun, so they now close on December 25 to give staff the day off."

In terms of pay Mr Ginn said that it has come up to a "more acceptable standard", with the average wage going up 25-30pc.

Yasmin Wyatt, from Two Magpies Bakery, which has cafes across Suffolk and Norfolk, said that it has also increased wages to attract staff.

She added that the company "always pay above minimum wage".

"We have 205 employees across the region and 90pc of our team are salaried."

Ms Wyatt also revealed that, due to being a cafe, the business offers sociable hours, as well as providing progression and development opportunities.

Nick Attfield, from Adnams, which owns pubs and hotels across the region, said that the hospitality industry "needs to continue its focus on retention of staff and career building".

He added: "Much more focus on improved working conditions and terms and Adnams is a Real Living Wage Employer, as well as a host of other benefits that a company of Adnams size can offer."

The changes to working conditions and pay is paying off as pubs, restaurants and hotels are appealing to workers from London and the surrounding areas.

"The cost of living crisis is benefiting businesses in terms of attracting workers," said Mr Ginn.

"Salaries are now the same here as in London, but house prices and rents are much lower and for many the quality of life is better.

"We're got an influx of one way traffic down the A11.

"There is a good level of candidates deciding on Norfolk for their future.

"I'm finding that 25-30pc of candidates I'm placing in jobs are not from Norfolk."

For businesses, however, increasing wages and lowering working hours is having a knock-on effect on their costs.

Ms Wyatt said that rising costs "is a worry".

"Hospitality is very resilient, but it hasn't recovered as quickly as hoped from the pandemic." added Mr Ginn.

"The cost of living crisis has had an impact.

"But businesses have been adapting - some, for example, are closing on their quieter days to keep running costs down.

"What has helped Norfolk is a massive influx in customers.

"Holidaying in the UK has remained popular especially as people are looking to cut down on their spending and are not going abroad as a result.

"We're surrounded by tourism and with tourism booming, hospitality is benefiting."

Figures from Visit East of England released last month show that although tourism in Norfolk and Suffolk was up compared to last year it is still below pre-pandemic levels.

The value of tourism in Norfolk during 2021 was up 54pc on 2020 to £2.3bn, but 32pc below 2019.

In Suffolk the value was up 59pc on 2020 to £1.4bn, but 35pc below 2019 levels.

With tourism key to the success of the region's hospitality industry, Mr Ginn thinks the future looks good for the sector.

"Summer is where hospitality makes its money and this has been extended into a six month season," he said.

"December is also a busy month.

"Winter, however, will always be a struggle but work is being done to attract more tourists during the off-season."

Although Ms Wyatt said she is positive about the business she added that "the economic outlooks remains a worry."