The hospitality sector could be facing a black hole of up to £37m due to staff failing to return company equipment and uniform, a study has claimed.
Workwear specialists Alexandra, which commissioned the report, said the hospitality sector risked suffering “crippling losses” due to the severity of the issue and the size of the sector.
Additionally, the hospitality market has a higher than average quota of workers on temporary contracts, compounding an already steep turnover rate of 41%.
The study did not distinguish between the foodservice aspect of hospitality and other functions, but any losses incurred from the catering side are unlikely to concern catering suppliers too much if it means replacement items being ordered!
Martin Lyne, managing director at Alexandra, said: “Businesses need to make sure that they do not end up overlooking areas of significant hidden costs when looking to control their finances. Identifying all areas of potential loss is essential to understanding where companies need to make cuts.
“Unfortunately, among the many costs and difficult decisions facing businesses at the moment, workwear losses have seemed unimportant, either due to lack of awareness of the value involved, or because it is a burden upon time and resources.”
Lyne added that companies needed to take the issue seriously by “closing the gap on what is essentially a very avoidable cost”.