Coronavirus restrictions pushes Marston's to axe over 2,000 jobs
In a statement to the London Stock Exchange this morning (15 October), the group said that the introduction of the curfew, coupled with the effects of the new three-tier alert system in England and the tighter restrictions recently imposed on Scotland, had damaged consumer confidence and undermined its efforts to reopen following the nationwide lockdown.
Describing the measures as 'hugely disappointing', the company said that 'inevitably and regrettably' it would have to make cuts.
"Because of the recent additional restrictions, we have reluctantly concluded that around 2,150 pub-based roles currently subject to furlough are going to be impacted," Marston's said.
"Furthermore, we have initiated a full review of overhead costs which will be concluded by the end of December.
"These decisions are difficult but are necessary due to the restrictions placed upon our business at this time."
Marston’s, which owns the Pitcher & Piano and Revere chains and operates 1,400 sites across the UK, said sales slumped by a third in the last year, but trading had begun to improve over the summer.
Since the lifting of lockdown on 4 July, the group said it had reopened most of its pub estate and 'consumer confidence increased steadily throughout July, August and into September', but that this had since been undermined by the new restrictions.
Marstons said it has 21 pubs in Scotland, of which eight are currently closed.
It also has 18 pubs in the 'very high' risk Liverpool region, the majority of which can serve food so therefore can remain open.
“There is much uncertainty ahead, the majority of which is outside of our control, however we will continue to focus on the safety of our teams and guest," said CEO Ralph Findlay.
"Looking beyond the immediate challenges, we look forward to our future as a focused pub operator, returning to growth when trading conditions allow and realising the opportunities which are open to us over the medium to longer term.”
In recent weeks, both Fuller's and Greene King have announced significant job cuts as a result of the impact to trade caused by new Coronavirus restrictions.
