Podcast: Grind's David Abrahamovitch on post-lockdown trading

By Joe Lutrario contact

- Last updated on GMT

Grind coffee CEO David Abrahamovitch on post-lockdown trading

Related tags: UnitedWeStand, Coffee, Casual dining, London, Coronavirus

The co-founder and CEO of Grind says that fewer tourists and fewer office workers alongside health and safety restrictions could create an extremely challenging environment for hospitality businesses when the UK's lockdown lifts.

Speaking on BigHospaility's latest United We Stand podcast, David Abrahamovitch warns that social distancing measures in hospitality businesses including a reduction of covers will make many of his sites nonviable.

“Our models just don’t work without significant footfall. Most restaurant businesses can’t survive a 10% drop in customer numbers let alone a 50% drop. There’s no point reopening if you’re just going to lose money,” he says.

On top of this, support from Government - including the option to furlough staff - and landlords is likely to dry up post lockdown, making re-opening in a difficult and uncertain environment even tougher.

“And you also have the added pressure of the cash intensity required to get re-opened,” he says. “There’s stock to buy and who knows what’s going to happen with credit in the supply chain.

"It’s cash intensive to re-open and potentially fund periods of losses when trade is going to be a fraction of what it was before lockdown.

"This is the scary bit for me - it’s even scarier than where we are today.”

#UnitedWeStand​ has been created by William Reed hospitality titles BigHospitality, Restaurant magazine and Morning Advertiser and is supported by Arla Pro, Britvic, Coca-Cola European Partners, McCain and Unilever Food Solutions.

To download this podcast via iTunes click here.

Related topics: People, Casual Dining

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