One in four hospitality businesses could fail this year
By Rob Freeman | 24th September 2020
Almost a quarter of pub and hospitality businesses believe they will struggle to last beyond the end of the year without fresh government support.
The stark warning comes from a survey carried out by the British Beer & Pub Association, UKHospitality and the British Institute of Innkeeping which showed 23 per cent of their members fear they will fail by the end of 2020.
And their findings came before the latest government coronavirus restrictions which sparked a warning in Punchline-Gloucester.com that they could be the final straw for many landlords.
The survey found one in eight hospitality staff have been made redundant with businesses predicting their workforce will be 25 per cent lower by February than the same time this year - a fall of 675,000 jobs.
Only seven per cent said they were feeling optimistic about the next 12 months - down from 23 per cent and 19 per cent in August and July respectively.
British Beer & Pub Association chief executive Emma McClarkin said: "This research shows pub businesses were already teetering on the edge.
"Now the Prime Minister has announced even more restrictions for them, it is clear much more support will be needed from the Government to ensure they survive."
UKHospitality chief executive Kate Nicholls said the future of the sector was in the balance.
She said: "Many venues have still not reopened and those that have are operating at reduced capacity and a fraction of normal revenue.
"We have already had some high-profile casualties and far too many job losses.
"The additional restrictions announced this week place even further burdens on a sector that is operating with razor-thin margins and needs all the help it can get. It is vital that these restrictions are reviewed regularly."
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