Businesses embrace Job Retention
THE EXTENSION OF FURLOUGH SCHEME PROVIDES A SAFETY NET
‘CONTINUED SUPPORT IS CRUCIAL TO HOSPITALITY’
IN MANY ways, coffee and winter go hand-inhand: its throat-warming alchemy the perfect balm for the bone-chilling weather. But winter isn’t just about giving coffee shops an excuse to add comforting pick-me-ups such as gingerbread lattes to the mix: they typically do a stronger trade in the colder months.
However, an ongoing level of consumer uncertainty combined with a drop in footfall, due to the rise in remote working, has left many coffee shop owners fretful about the months ahead.
“Winter’s usually a good season, but with people not commuting and further lockdowns affecting customer confidence, I don’t know whether they’d leave their houses for a comforting drink,” says Michaela Kyriacou, founder and director of London-based coffee bar Bean + Brew.
However, the news that the coronavirus Job Retention Scheme (furloughing) has been extended until March 31, 2021 has been a salve to Kyriacou. “It’s meant I’ve managed to retain all of my four staff,” she says. “Yes, furloughing still costs the business, but these costs are relative to the wages staff members receive while furloughed. It’s much more affordable.”
A new clause introduced to the scheme means anyone made redundant on or after September 23 may be able to be rehired and returned to furlough. Having made the difficult decision to make one member of staff redundant in October, Kyriacou says the revised scheme allows Bean + Brew to keep this employee on payroll. “Retracting her redundancy has meant I’ve kept all four of my team this year,” she says.
When the first lockdown hit in March, Bean + Brew had just celebrated its first birthday. Kyriacou had worked hard to set up the cafe, having left her corporate tax job at a big four accountancy firm to train as a barista. Closing the store for three months was “gutting”, she says, but during this time the store sold online, with Kyriacou and her father delivering coffee around London.
Kyriacou also furloughed her staff for this period, giving her confidence the scheme will benefit Bean + Brew once again.
“We’ve had part-time furloughing before, so we know how it works,” she says. “Not only is it familiar, but it’s effective, too – furloughing definitely did its job. As a business-owner, it gave me peace of mind that my team were covered.”
She also believes the furloughing extension can provide succour to other hospitality firms: “The industry still isn’t out of the woods yet, but continued support is crucial to keeping them going.”
Kyriacou also hopes that one silver lining from the pandemic will continue. “[The crisis] has brought home that local businesses are the staple of the community: people are going out of their way to visit local shops, and we’re getting to know our customers more personally. Ultimately, we’re in the business of hospitality, not just selling coffee.”