Restaurants call for meal subsidy extension
Hospitality bosses urge the Chancellor to continue the Eat Out To Help Out scheme for another month
PUB and restaurant chiefs have urged Rishi Sunak to extend the Eat Out To Help Out scheme after diners flocked back in droves when the subsidy launched in August.
Bosses are pleading for an extension to the Chancellor’s £350m meal subsidy to help them stay afloat, amid fears that a string of cash-strapped businesses are at risk of going bust if a fresh downturn strikes in coming months. Meanwhile, several chains have already taken matters into their own hands and vowed to continue offering discounts regardless of whether they get state support.
The pleas came as JP Morgan warned that two million jobs could be lost if the furlough scheme ends in October and called on the Chancellor to extend it as well.
Patrick Dardis, chief executive of pub chain Young’s, said the Government should consider reintroducing the Eat Out To Help Out scheme in January when trade is traditionally slow.
Mr Dardis was initially sceptical of the benefits the scheme would bring, but now believes it gave consumers the confidence to go out to pubs and res- taurants again.
He said: “I eat my words. It’s been very successful. We would love a commitment from the Government to bring it back in January and kick-start 2021. To reintroduce it then would be a godsend for the trade.”
Kate Nicholls, boss of trade body UK Hospitality, said that many restaurants and pubs are still shut and the scheme should be extended to get them back open. She said: “The benefit to consumers and the importance to businesses shows the need to continue it for another month.”
Eat Out to Help Out gives diners a 50pc discount on food and soft drinks up to a maximum of £10 per head from Monday to Wednesday in August, with the Government picking up the tab.
It has been hailed by industry chiefs for giving a vital boost to the struggling hospitality industry in the face of collapsed confidence and social distancing rules that severely limit capacity.
According to the Office for National Statistics, more than one in 10 adults have already taken advantage of the discount and a further 41pc are planning to make use of the scheme this month.
More than 35m half-price meals have been served up under the scheme in the two weeks since its launch, with the bill totalling £180m to date, according to HMRC data.
Fulham Shore, which owns pizza chain Franco Manca and The Real Greek, said on Thursday that sales during the second week of the scheme had been close to £1.5m, making the first half of August “markedly up” compared with last year.
Chief executive David Page said the 50pc discount has been encouraging diners to spend more per head.
He added: “We hope Rishi might continue this because it’s great to get people out. We’ve taken everybody off furlough and we’re hiring more people. I’d like to see another month [of the scheme].”
Calls for the scheme to be extended came as grab-and-go sushi and bento chain Wasabi launched a company voluntary arrangement late yesterday, a process that is expected to result in the closure of a handful of its 51 sites across the UK.
The firm said social distancing, a slump in tourism and a lack of workers returning to the office as a result of the pandemic had resulted in an “extraordinary impact” on trading.
Wasabi has hired beancounter KPMG to advise on a restructuring.