The prediction for total business failure in the sector by the end of 2020 is now estimated to be more than one in four
The ‘grim’ results come from a CGA survey commissioned by UKHospitality, the British Institute of Innkeeping and the British Beer & Pub Association.
It shows that 76% of hospitality businesses are now making a loss and over 50% of businesses are expected to fail before the end of Q1 next year. Nearly 50% of respondents said they believe that current restrictions will reduce their turnover by at least half this winter.
The survey was run prior to the full impacts of the tier system being announced, however, and if anything, are likely to be an under-estimation of the trouble the sector finds itself in.
The trade bodies are calling for an immediate, sector-specific extension of the Jobs Support Scheme with no employer contribution until restrictions are lifted for all tiers; Government Disruption Grants to be made available for all venues, across all tiers; and for a review of any restrictions placed on venues to take place at least every two weeks.
The survey results are released as London Mayor Sadiq Khan said he was supporting those protesting at today’s (Monday 19 October) Hospo Demo and is also calling for more government support for the sector.
He said: ‘Our bars, restaurants and other venues must now get the extra financial support they need urgently to stay afloat.
‘The 80% furlough scheme was a lifeline for many businesses at the start of the pandemic, and it is this level of support London’s hospitality sector now needs to prevent further widespread unemployment and ensure this world-leading sector can return to business when the virus is under control. Until the government gets a grip on this virus, ministers have an obligation to give businesses the support they need to survive while restrictions remain in place.’
- Keep an eye on our social feeds this morning if you want to see what's happening at the Hospo Demo in Parliament Square. @imbibeuk on Insta and Twitter or search for us on Facebook.