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Morning Briefing for pub, restaurant and food wervice operators

Mon 1st Mar 2021 - Britain’s licensed premises closing permanently at record rate of more than one an hour
Britain’s licensed premises closing permanently at record rate of more than one an hour: Almost 12,000 licensed premises have closed permanently in Britain since December 2019 – at a record rate of more than one an hour, according to the latest Market Recovery Monitor from CGA and AlixPartners. While 4,170 new sites have been recorded since December 2019, the loss of 11,894 venues means there have been almost three closures for every fresh opening – leading to a net loss of 7,724 licensed premises. While the sector now has a roadmap to reopening, research for the Monitor suggested the freedom to trade outside from mid-April would be of limited benefit. Well under half (43.2%) of England’s pubs, bars and restaurants have an outdoor area of some kind, and while the number is higher among food pubs (78.4%) and community pubs (71%), it is far lower on high streets (25.6%) and among casual dining restaurants (11.4%). “These numbers set out the full, devastating impact of the pandemic on Britain’s licensed premises,” said Karl Chessell, CGA’s business unit director for hospitality operators and food, EMEA. “The wipeout of Christmas trade was clearly the final blow for many businesses and the long wait that others now face to open their doors sadly means closures will mount even higher.” The Monitor also revealed the food-led sector has been hit harder by covid-19 than the drink-led market, losing 7.6% and 5.5% of total sites respectively. The casual dining sector has contracted by 15.8% –equivalent to more than 1,000 casual dining restaurants, or almost one in six of the total, shutting their doors since December 2019. But the report also points to resilience in some areas of the market, including bars and cafes. Many city centres have also proved more durable than expected, with central Sheffield, Liverpool, Edinburgh and Nottingham all losing fewer than 3% of their licensed premises since December 2019, and the London market trimmed by a below-average 6.3%. Chessell said: “Pubs have proved more durable than restaurants in recent months and outside service will give many of them a useful kick start if the sun shines. Amid all the closures, it’s also encouraging to see a steady flow of new entrants to the market. We remain very confident about the long-term future of the sector but, unfortunately, there is more pain to come first.” AlixPartners managing director Graeme Smith added: “The rapid acceleration in site closures since the start of the year demonstrates just how brutal the situation is. The Budget is absolutely crucial to the future survival of thousands of sector businesses; a substantial package of financial support is needed to prevent greater numbers of closures across this year and beyond.”
AlixPartners is a Propel BeatTheVirus campaign member

MPs write to chancellor to demand more support at the Budget: MPs have demanded additional government support for the hospitality and tourism sectors at the Budget. The All-Party Parliamentary Group (APPG) for Hospitality and Tourism sent a letter to the chancellor asking for the VAT cut to be extended by 12 months and include alcoholic drinks sold on-premises, the business rates holiday be extended for another year and extend the furlough scheme, reinstate the Job Retention Bonus and provide improved loan repayment terms and tax deferrals. The letter has been signed by 83 MPs and stated both sectors have been “devastated by the covid crisis”. It also cited industry figures that show hospitality sales plummeted 54% in 2020, equivalent to £72bn, while 40% of accommodation and foodservice businesses have no or low confidence of surviving the next three months. APPG co-vice chair Sally-Ann Hart MP said: “Ongoing government support to the end of the pandemic and through the recovery phase is critical.” UKHospitality chief executive Kate Nicholls added: “The support of so many MPs from all parties and from the four nations of the UK emphasises just how important the hospitality and tourism sectors are.”

BBPA launches dedicated Welsh branch: The British Beer & Pub Association (BBPA) has launched a dedicated Welsh branch to coincide with St David’s Day. The Welsh Beer & Pub Association (WPBA) will represent beer and pub businesses in Wales and will be chaired by Mark Davies, chief executive of Hawthorn, the community pub arm of NewRiver. The WBPA will work alongside the BBPA, Welsh government, the Senedd and UK government to campaign for policy outcomes that help protect and grow the sector. There are more than 3,000 pubs in Wales and about 120 breweries, with the overall Welsh beer and pub sector supporting 42,000 jobs and contributing almost £1bn in gross value added to the economy. WBPA chief executive Emma McClarkin said: “Given today is St David’s Day, it could not be a better day to launch this important new trade association. I urge pubs and brewers who feel they need a voice to get in touch to find out how we can help them.” Davies added: “Pubs and the brewing industry have been at the heart of Welsh communities for centuries. As a Welshman, born and bred, I’m proud to stand alongside my industry colleagues as part of the WBPA to promote the beer and pub sector in Wales. The people of Wales are proud of their heritage and pubs are part of the social fabric that makes Wales such a great place to live and work.” 

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