Two-thirds of hospitality businesses say they will not survive another three months of lockdown

By Joe Lutrario contact

- Last updated on GMT

Hospitality businesses say they will not survive another three months of lockdown

Related tags: UnitedWeStand, Casual dining, Coronavirus

Two thirds of hospitality companies believe they will not survive a prolonged lockdown without further far-reaching support from government.

That’s according to a recent study by KAM Media involving 211 hospitality companies including restaurants, pubs, bars cafes and street food venues.

“So many hospitality businesses are at risk and we need help in navigating a pathway to safety,” says KAM Media director Katy Moses.

“We need some fundamental interventions on rents and property, and on finance and loans, and it’s becoming clear that much of hospitality will require a much longer extension of the furlough scheme, given that businesses will not emerge fully from lockdown for some time.”

Moses is calling on the industry to get behind campaigns such as #NationalTimeOut,​ which has been spearheaded by Jonathan Downey and Hospitality Union, who are campaigning for a nine-month rent holiday, to be supported by the government.

Referring to this #NationalTimeOut campaign, the research showed that 87% of hospitality businesses do not expect to survive without the nine-month rent holiday or some equivalent, being introduced.

“The government has moved quickly to address some of the existential challenges that hospitality faces, brought by the crisis and lockdown, and as an industry we are extremely grateful,” says UKHospitality CEO Kate Nicholls.

“However, this research underscores the scale of the challenges, which is reflected in the current mood of the industry. We need far-reaching and continued support, and unprecedented intervention of the order of the proposed nine-month #NationalTimeOut idea or an equivalent concept of similar scale, in order for hospitality jobs and businesses to endure this crisis and to be there to drive the recovery.”

A long recovery

The hospitality industry is also expecting a long recovery time before sale return to pre-Covid levels, the research showed. When lockdown measures are lifted, most companies (86%) said they thought consumers would eat out less, with 82% expecting consumers to drink out less, as well.

“We are very likely to see a much more cautious consumer coming out of this lockdown, at least in the short-term. Although there will be a proportion who will run straight to a pub for a cold pint, many will stick to essential only social gatherings in a bid to keep themselves safe,” continues Moses.

“While we fully expect operators to respond with well-executed and communicated social distancing, and health and safety measures, it means that many will operate on drastically reduced capacity and this will place significant economic pressure on swathes of the industry.”

The research found that 83% of those questioned expect customer numbers to be down for at least six months after re-opening; 38% said they would expect it to take at least a year for their footfall to return to pre-lockdown levels.

The research also showed that many hospitality businesses are working hard to pivot their business models during lockdown, as well as to support their communities.

Of the 211 participating companies, one-in-four had started offering delivery, as a result of the lockdown, and 80% say they intended to continue offering this service, post-lockdown.

67% are already pro-actively planning how to attract customers back once they’re allowed to re-open.

Related topics: Business

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