Warnings Covid ‘car crash’ could ruin hospitality
A NIGHTCLUB boss is calling on the Government to provide more clarity and support for hospitality businesses facing a crisis as a result of the new Covid variant.
Debrah Dhugga, chief operations officer at The Apartment Group, which owns the venues on Collingwood Street, said they have received “thousands of cancellations” over the festive period since the Prime Minister instructed people to work from home.
“The industry is at a crisis again,” she said. “I think it is crucial that the Government gives a statement about what is going to happen so that operators can plan.
“People are now working from home and not socialising [which] has had a massive effect this Christmas.
“We are all just in limbo and trying to cope with this while dealing with customers and staff.
“Trading has already been damaged by what has gone on with the variant. It’s now time that hospitality needs some guidance.”
Mrs Dhugga described the festive season, which should be their busiest time of year, as a “car crash” and called on the Government to provide more support for the hospitality industry.
“We are just getting on our feet and it’s supposed to be one of the busiest seasons,” she said.
“We thought it was going to be this big comeback but it’s turned out to be an absolute car crash.
“We desperately need the support of the Chancellor [and for him] to recognise what the spread of this virus is doing to the industry. Hospitality and leisure are facing huge uncertainty at this crucial time.”
The Apartment Group opened four new venues on Collingwood Street this year, including Howlers and ChaChaBuchi, as part of a £3m investment.
But after receiving thousands of cancellations, the firm has taken the tough decision to close all of its marquee venues on Christmas Eve. Plans for Boxing Day parties have also been cancelled.
“Yet again the city is dying,” she said. “How much can the hospitality industry take?
“Newcastle was once a party city and a city of celebration. Covid is killing us.”
Calling for more financial support for the hospitality industry, Debrah said the £6,000 grants offered by the Government are not enough to support businesses through this tough time.
“At the end of the day, the £6,000 grants that have been put on the table don’t pay our wages for one week,” she said.
“It’s just way off the mark, it’s not a support package, it’s just like one good lunchtime. It’s in no way what we need.
“We need to see VAT and business rates sorted. We need to see a support scheme that will include furlough or a selective furlough scheme.”
Mrs Dhugga described the situation for the UK hospitality industry as “heartbreaking” and said she expects to see smaller businesses closing as they struggle to cope without Government support.
She said: “I know how tough it is for us as one of the biggest operators in the North of England, so while the £6,000 is a step in the right direction it is not enough to support the cash flow systems of businesses.
She continued: “It’s hard to believe that we are here again, that the industry is losing trade over the festive period and a lot of the venues are having to close. The hospitality sector is facing a harsh winter.”