Last orders? Pubs and cafes driven to brink
BRITAIN’S biggest pubs, bars and restaurants reported dire trading yesterday amid warnings that many would collapse this weekend with the loss of a million jobs.
As the reality of the coronavirus outbreak hit home, pub group Marston’s joined the owners of Wagamama, Frankie & Benny’s, All Bar One, Harvester and Revolution bars in outlining just how bleak the situation has become.
Industry body UK Hospitality said ministers had ‘days’ to act as bosses prepare mass lay-offs.
Kate Nicholls, chief executive of UK Hospitality, said: ‘Our analysis suggests in excess of 1m jobs are now on the line.
‘Job cuts are extraordinarily deep and they are happening now – today and tomorrow, and are snowballing. We need urgent support and funding within 24 hours to keep people in employment.’
It estimates that between 200,000 and 250,000 jobs have already been lost. The British Beer and Pub Association fears thousands of pubs will collapse this weekend.
Chief executive Emma McClarkin said: ‘The Government has 24 hours to create a pub-specific package to prevent irreversible closures and job losses.’
It called on the Government to underwrite 75pc of wages for all pub and brewing staff, costing the Exchequer around £1bn. The industry claims the Government’s £350bn rescue package so far is not enough to stop mass redundancies in a sector hammered as tourists, families and regulars staying at home.
The Restaurant Group said sales at airport outlets and pubs fell 21.7pc in the past two weeks. Its High Street business, including Wagamama, Frankie & Benny’s and Chiquito, is set for a 68pc fall in sales in the second quarter ‘including ten weeks of shutdown’.
Revolution Bars has stopped paying rent and appealed to the Treasury for VAT and PAYE income tax payments to be delayed or cancelled. It said it will lay off staff, although did not say how many, and was considering cutting hours.
Marston’s, which runs 1,400 pubs, suspended rent for some tenants and scrapped a £20m dividend.
All Bar One and Harvester owner Mitchells and Butlers said it was unable to provide full-year guidance because its trading had been ‘severely impacted’.
Jonathan Downey, founder of food and drinks market group London Union, said: ‘We need something for employees. The Government’s intervention will have done nothing to save jobs in some businesses.’
Cafe chain Starbucks said it is ‘closing select stores’ in locations where people tend to gather in large groups, such as cinemas. Torsten Bell, at the Resolution Foundation thinktank, said: ‘Loans to firms aren’t going to be enough to stop them firing people when no-one knows how long this will go on for.’
The £350bn crisis package includes grants of up to £25,000 for pubs, restaurants and theatres. All entertainment and hospitality firms will get a business rates holiday until April 2021.