Hospitality firms ‘teeter on the edge’
THE hospitality industry is “teetering on the edge” following new virus-related restrictions, with one in four businesses believing they could fail by the end of the year without further Government support, according to a new report.
Trade bodies warned there could be 540,000 further job losses because of new rules such as closing early and table service only.
The British Beer & Pub Association, UKHospitality and the British Institute of Innkeeping published new findings from a survey of their members which revealed a high level of concern about the future of the pub and wider hospitality sector even before the new restrictions were announced by the Prime Minister.
The research found one in eight hospitality staff have already been made redundant and that more 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 per cent lower by February 2021 compared to February this year – a decline of 675,000 jobs.
Only seven per cent of respondents said they were feeling optimistic about the prospects of the hospitality sector over the next 12 months, down from 23 per cent in August and 19 per cent in July.
The trade bodies called on the Government to take “drastic” action, including a new sectorspecific employment support package, an extended VAT cut and delighted by the return of global business rates holiday for the secaudiences totor.ourcinemastowardthe end of the first half, as well as by the Emma McClarkin, chief execupositive customer feedback we have tive of the British Beer & Pub received from those that have waited Association, said: “This research patiently to see a movie on the big shows pub businesses were screen again.” already teetering on the edge.
He added: “Current trading has Now the Prime Minister has been encouraging considering the announced even more restriccircumstances, further underpintions for them, it is clear much ning our belief that there remains a more support will be needed from significant difference between the Government to ensure they watching a movie in a cinema – with survive. An immediate stimulus high-quality screens and best-inpackage is required for our sector class sounds – to seeing it at home.” in the form of an extension to the
In May, Cineworld pulled out of a furlough scheme and business 28 billion Canadian dollar (£1.6 bilrates relief, plus continuation of lion) deal to buy Canada’s biggest the VAT cut to food and soft drinks chain Cineplex, which would have and a significant cut to the UK’s created the biggest chain of cinemas excessively high beer duty.” in North America. Kate Nicholls, chief executive of UKHospitality, said: “The future of the sector is still very much in the balance. Many venues have still not reopened and those that have are operating at reduced capacity and a fraction of normal revenue.
“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.”
Steven Alton, chief executive of the British Institute of Innkeeping, said: “This insight clearly reinforces the urgent need for a specific package of Government support for our sector, especially in light of the devastating impact of new restrictions”