Covid-19

Hospitality fears 23% failures

The British Beer & Pub Association, UKHospitality and the British Institute of Innkeeping have reported that almost a quarter (23%) of their members think their businesses will fail by the end of the year without further government support.

The findings revealed the high level of concern about the future of the pub and wider hospitality sector without further support from government. This was before the latest restrictions for pubs, restaurants and the wider hospitality sector were announced by the PM earlier this week, including a 10pm curfew and table service only, which will only make the situation worse.

The survey also found that one in eight hospitality staff have already been made redundant, and that more sector jobs are expected to be permanently lost when the government’s furlough scheme comes to an end in October. On average, businesses believe their workforce will be 25% lower by February 2021 compared to February this year – a decline of 675,000 jobs lost from the sector in a year.

Only 7% of respondents said they were feeling optimistic about the prospects of the hospitality sector over the next 12 months, down from 23% in August and 19% in July when respondents were previously asked the same question.

Kate Nicholls, CEO, UKHospitality, said: “The future of the sector is still very much in the balance. Many venues have still have not reopened and those that have are operating at reduced capacity and a fraction of normal revenue. We have already had some high-profile casualties and far too many job losses.

“The additional restrictions announced this week place even further burdens on a sector that is operating with razor-thin margins and needs all the help it can get. It is vital that these restrictions are reviewed regularly.

“We need comprehensive financial support so that those businesses that survive the winter can begin to rebuild next year, starting with a package of measures to support short time working. The VAT cut for hospitality must be extended through 2021, as must the business rates holiday. We also need the government to step in now and help to deal with the rent debt that has built up over months of enforced lockdown.”