Figures from the latest UKHospitality and CGA Quarterly Tracker show that sales collapsed from £133.5bn in 2019 to £61.7bn in 2020; a staggering drop of 54%.
Strict local and national restrictions on trading and socialising caused a particularly damaging drop in trade in the final quarter of the year, the Tracker shows.
Sales from October to December 2020 were worth just £14.3bn; down by £18.7bn or 57% on the last quarter of 2019.
With restrictions likely to remain in place for at least the next few months, UKHospitality chief executive Kate Nicholls says the figures should serve as a stark reminder to Government that a clear exit strategy and ongoing support are imperative.
“These figures are simply devastating,” she says.
“Hospitality was hit first, hit hardest and continues to suffer because of pandemic restrictions brought in. And sitting behind this massive loss of revenue is the dreadful, real impact on people’s lives and livelihoods across all parts of the sector and supply chain.
“We need the Chancellor to step up again in his forthcoming Budget to deliver a bold, wide-ranging package of financial support that ensures as many businesses and jobs as possible are saved and the sector returns to growth.
"An extension of the VAT cut and business rates holiday must be top of the menu.”