UKHospitality warned that a potential six months of restrictions to try and restrain the pandemic were a “potentially fatal blow” to the sector.
The organisation joined others in the sector in calling for support from the government.
Under the new restrictions, staff and customers in indoor hospitality must wear masks, except when seated at a table to eat or drink and all pubs, bars and restaurants must operate table-service only.
All hospitality venues must close at 10pm, with hotels waiting for clarification on what this meant in practice. In addition, in retail, leisure, tourism and other sectors, Covid-secure guidelines will become legal obligations. Businesses will be fined and could be closed if they breach these rules.
UKHospitality CEO Kate Nicholls said: “In isolation, they may appear moderate, but the cumulative effect is going to be hugely damaging. Consumer confidence is going to take another hit and we cannot hope to recover while confidence remains low.
“The shift back towards working from home is going to hit city centre hospitality very hard. These businesses have already lagged behind as office workers and tourists have stayed away and they are going to take another battering.
"Most disheartening is the announcement that they are potentially in place for six months. Lots of businesses will not survive this and we are going to see more and more people lose their jobs unless we have the support to counterbalance these restrictions.
“The government must immediately announce an exhaustive package of financial support, otherwise our sector is facing ruin. Employment support must be extended. The furlough scheme is already wining down and it comes to a complete halt at the end of October. Unless it is extended for our sector, businesses are inevitably going to have to make staff redundant. We are looking at a steady stream of job losses for six months, otherwise.
“We also must have longer-term support to enable businesses to rebuild in 2021. The VAT cut for the sector must be extended as must the business rates holiday. We also need a rent-debt settlement package, otherwise whole businesses are going to go under with widespread redundancies.”
When pressed on support, Boris Johnson would not be drawn on detail, commenting that the government would "put our arms around the workers of this country. We will do everything we can to keep our economy moving and keep businesses going wherever we can.”