Quarter believe business will fail

A quarter of hospitality businesses (23%) believe they will fail by the end of the year without further Government support. 

The findings, from a survey of members of British Beer & Pub Association, UKHospitality and the British Institute of Innkeeping by CGA, found one in eight hospitality staff have already been made redundant.

More sector 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% lower by February 2021 compared to February this year – a decline of 675,000 jobs lost from the sector in a year.

The survey was taken before the latest restrictions for pubs, restaurants and the wider hospitality sector were announced by the PM earlier this week.

Calls for additional support were made ahead of Rishi Sunak’s latest package which was reported late last night.

Only 7% of respondents said they were feeling optimistic about the prospects of the hospitality sector over the next 12 months, down from 23% in August and 19% in July when respondents were previously asked the same question.

Kate Nicholls, CEO of UKHospitality, said: “The future of the sector is still very much in the balance. Many venues have still have not reopened and those that have are operating at reduced capacity and a fraction of normal revenue. We have already had some high-profile casualties and far too many job losses.

“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.”

Emma McClarkin, CEO of the BBPA, said: “This research shows pub businesses were already teetering on the edge. Now the Prime Minister has announced even more restrictions for them, it is clear much more support will be needed from the Government to ensure they survive.”