Propel Morning Briefing Mast Head Propel Hospitaliity website Paul's Twitter Link Subscribe Unsubscribe Web Version Forward Email Hobgoblin Banner Morning Briefing Strap Line
Wed 18th Mar 2020 - Coronavirus: UKHospitality warning, footfall, CGA research, Ego, Brasserie Bar Co, Pret, Grind and Oakman
UKHospitality – we have 24 hours to save one million jobs: UKHospitality has urged the government to announce an immediate package of employment support for businesses in the next 24 hours to preserve more than one million jobs as employers face the prospect of making immediate mass redundancies to survive. UKHospitality estimates in the two weeks since the impact of coronavirus was truly felt in the UK, the sector has shorn between 200,000 and 250,000 jobs, the majority coming in the past few days. Chief executive Kate Nicholls said: “Our analysis suggests in excess of one million jobs are on the line. Job cuts are extraordinarily deep and are happening now – and snowballing. Companies are having to make the difficult decisions now and, with many hospitality and leisure businesses having to choose to close or massively reduce operations, there’s little chance of saving many jobs without far-reaching help. What the sector urgently needs is a package of support and funding to keep people in employment. This needs to happen within 24 hours. While the extra measures announced yesterday represent significant help that will give many companies a lifeline, the massive issue remains people and preservation of jobs. What was announced by the chancellor yesterday won’t stop job losses as companies will be worried about taking loans to pay staff when they have zero income. For many, it isn’t viable. This is about helping individual people preserve their employment status and avoid swamping the already strained welfare system. It will also allow companies to keep their teams and be ready to aid the economic recovery when stability returns. The speed of change and severity of action companies are having to take is shocking. Many more will be lost in the coming days without help.” Fuller’s chief executive Simon Emeny tweeted: “I am in central London visiting colleagues in Fuller’s pubs. Today all are open. Why? Because we’re scared to let our staff down. But we can’t stay open this way for long. Our people need your support, Mr Sunak, now.”

London footfall down 60% as UK numbers continue to plummet: UK high-street footfall was down an average 58% across the UK on Tuesday (17 March) compared with the previous year as people stayed at home during the coronavirus crisis, according to the latest data from Wi-Fi solutions provider Wireless Social. The analysis, which took an aggregated look at footfall in more than 800 venues nationally and focused mainly on major cities, showed footfall in London was down 60% year-on-year. Of the other cities analysed, Newcastle saw the next biggest drop, 59%. Edinburgh was down 56% followed by Liverpool (55%), Birmingham and Cardiff (48%) and Manchester and Bristol (47%). Wireless Social said during the past seven days there had been a 37% drop in footfall compared with the same period last year.

CGA – most consumers will stop going out but young remain sceptical: CGA’s One Pulse consumer survey carried out on Tuesday (17 March) has found most of the public will heed the prime minister’s advice and stop going out to pubs and restaurants. However, it’s a slender majority with most younger adults saying they will cut down but won’t stop. The snap poll of a representative sample of 500 consumers aged 18 to 65 found almost three-fifths (58%) of consumers who visit pubs, bars and restaurants will stop visiting, in line with government advice, with more than one-quarter (28%) suggesting they will visit less frequently. In total, 14% said they planned to visit at least as often to show support to the sector, while about one-third of under-24s said they would stop going out to eat and drink, although half would cut back. However, the delivery sector appears to be in for a boost, with more than one-third (35%) of respondents suggesting they will get food delivered as a result of government advice, rising to 40% for 21 to 24-year-olds and 38% for 25 to 34-year-olds. Similarly, 12% of respondents suggested they would use click and collect for eating and drinking out, which may prove another revenue stream for outlets. When asked about the government’s decision to discourage social gatherings, only 14% cited it as “overly drastic and unnecessary”, with almost (49%) suggesting it “seems like the right course of action”. More than one-third (34%) said “more should be done” and the government should advise people to avoid more venues. “This is just a first snapshot and the results of a wider survey will be available this Friday,” said Peter Martin, vice-president of CGA. “For the hospitality sector itself, the results are both good and bad news. They show some people are still willing to go out but not in anywhere near enough numbers to sustain business. By not ordering pub and restaurant closures operators have been left in limbo, without insurance cover if they close but not enough trade to pay wages without specific and major government aid.”

3Sixty Restaurants to close entire Ego estate: 3Sixty Restaurants, led by James Horler, will close all its Ego sites at 3pm this afternoon (Wednesday, 18 March) until further notice after experiencing a 60% decline in revenue during the past few days. Horler said the 21-strong business, which has a further two sites in the pipeline, made the decision after it was told covid-19 wasn’t an insurable infections disease and it wouldn’t be granted an EFG loan on account of surpassing the £25m revenue threshold. Horler told Propel: “We burnt through £45,000 yesterday and we can’t go on like that. The lack of clarity is crippling and the government needs to move quickly and decisively when it comes to employee pay. We’ve got 1,000 staff and we’ll be left after this process with about 30 to 40, which is us keeping our general managers and chefs. We are trying to keep a skeleton team for when we need to get things started again, whenever that may be. We can’t access insurance, we can’t access an EFG loan, we don’t know what to pay our staff – but we can’t continue as we are.”

Brasserie Bar Co closes all sites: Brasserie Bar Co, the White Brasserie Co and Brasserie Blanc operator, has temporarily closed its 37 sites until further notice. In a statement the company, which operates 20 pubs and 17 brasseries, said: “Taking advice from the government and the well-being of our guests and teams into consideration, we feel it is our only option at this moment. Apologies to all who had bookings with us, especially those looking forward to celebrating Mother’s Day at one of our pubs. We will miss you and your families a great deal and hope you can find other ways to mark your special occasion. We have a strong business and strategies in place to get us through this crisis and out the other side so we look forward to being back, firing on all cylinders, as and when the time is right. We would like to thank you for your loyalty and we will keep in touch with news and updates throughout our closure. Along with our standard social media platforms, we have set up a public Facebook group #BBKind to keep spirits lifted. We hope this will provide a source of inspiration and community for the coming weeks ahead and look forward to welcoming you as part of the group. Wishing you well, stay safe.”

Pret moves to takeaway-only model: Pret has moved to a takeaway-only model at its sites. The company stated: “Deliveries will continue through Deliveroo but the key priority is to try to reduce points of contact in shops and minimise the time it takes for people to get the food they need and leave safely and quickly. Importantly, all surplus food will continue to be donated to the homeless at the end of each night. At the same time, to help front-line health workers fighting coronavirus, anyone who works for the NHS will be able to have free hot drinks at any Pret and also have 50% discount on all other purchases.”

Grind closes all but three sites and turns them takeaway: Coffee and cocktail brand Grind has closed all but three of its 11 sites amid the coronavirus outbreak. The company said its Shoreditch, Exmouth Market and Greenwich outlets would operate as takeaway only. Grind said it would launch an app for mobile ordering and payment of coffee and food for collection as well as click and collect on its website. Its roastery business remains open. Grind founder David Abrahamovitch said in an email to customers: “I will continue to keep you updated as things progress. In the meantime, please stay safe and look after yourselves. Thank you for your loyalty over the years. We look forward to welcoming you back to Grind when this is all over.” The Shoreditch, Exmouth Market and Greenwich outlets are also serving free takeaway coffee for NHS workers. Danish baker Ole & Steen is also giving NHS and other emergency staff – including armed forces – a free hot drink with no purchase necessary at all its bakeries. It is also giving 25% off all eat-in and takeaway food (excluding alcohol) to the same group on presentation of an ID card. Carluccio’s is also offering 50% off to all NHS staff.

Dishoom launches first delivery option: Indian restaurant group Dishoom has entered the delivery market for the first time in response to the coronavirus crisis. The company launched the service through Deliveroo at its King’s Cross site, with other sites across its seven-strong estate (four more in London plus one each in Manchester and Edinburgh) set to come online during the next week. The company, which hoped to open in Birmingham next month, is also looking at offering a pick-up/click-and-collect option in the future. At the same time Tonkotsu, the Emma Reynolds and Ken Yamada-founded ramen restaurant group, has switched to Deliveroo and click and collect only at nine of its 12 sites, which excludes its Soho site that’s temporarily closed and its venues in Selfridges London and Birmingham.

Oakman Inns and Restaurants introduces four-point action plan to ensure it continues to trade: Oakman Inns and Restaurants, led by Peter Borg-Neal, has introduced a four-point action plan to ensure the company continues to trade successfully. Launched under the acronym NEWS, Borg-Neal promised his 1,000-plus workforce every one of its pubs would stay open and serve their normal menu – if permitted. Borg-Neal asked all staff to keep up their “excellent efforts at ensuring every surface remains virus-free secure in knowing if they self-isolate, they won’t suffer financial hardship”. He also said every item on the menu could be ordered and collected through a new service. He also said the company would launch an in-house delivery service for neighbours who couldn’t leave their homes. Finally, consumers could support their local pub via a gift voucher scheme that could be exchanged once all restrictions were lifted. Borg-Neal said: “In tough times, families stick together – and that’s exactly what we’re going to do. We also want to look after the individuals and families who live in our communities – just as we normally do but more so in these difficult times. By offering our new collection and delivery services we hope we can provide them with our freshly prepared dishes and a range of drinks, which will hopefully mean they feel less isolated. We are also asking our customers to do something for us – purchase gift vouchers to use in the future, which will help our cash flow.”

Return to Archive Click Here to Return to the Archive Listing
 
Punch Taverns Link
Return to Archive Click Here to Return to the Archive Listing
Propel Premium
 
Propel Quarterly Spring 2018view online
 
Peel Properties Banner
 
NT Assure Banner
 
Wi5 Banner
 
Ei Group Banner
 
McCain Banner
 
Wainwright Banner
 
hastee Banner
 
Trail Banner
 
Catapult Banner
 
Pago Banner
 
Access
 
Startle Banner
 
COREcruitment Banner
 
Venners Banner
 
Punch Taverns Link Punch Taverns Link
BT Banner
ALMR Web Link Web Version Unsubscribe Subscribe Propel Info website