The 2015 MasterChef winner Simon Wood (pictured) fears for his restaurant and the wider industry as coronavirus panic sweeps the country
Businesses fear they are on the brink as a restaurant bookings plummet by 75 per cent, a sports ban hits bookies’ profits and self-employed couriers attack ‘paltry’ sick pay.
Restaurant boss Simon Wood revealed he’s already noticing how hard the crisis is hitting the industry.
The chef-patron of Wood in Manchester fears for the coming months and said that as soon as a Covid-19 case hit the city it sparked a downturn.
‘I am quietly worried, looking ahead,’ he told the Manchester Evening News. ‘We just need some more bums on seats, we just need people not to be afraid and to come out for dinner!’
The city’s first diagnosis hit on March 4 and the UK has now seen 1,372 cases and 35 deaths.
Mr Wood says that he hopes to stimulate local industry by reassuring the public that his staff have brought in an even stricter hygiene regime than usual.
Meanwhile, nearby gin bar Three Little Words says reservations are dropping and it is preparing to support staff who need to self-isolate.
Wood (pictured) in Manchester is fearful that the downturn will hit it even harder as the crisis continues to unfold across the world
Coronavirus hysteria in Europe continued today on as Poland’s shut frontiers cause huge traffic jams in Germany and Ukraine – while Serbia and Slovakia went into lockdown and Portugal closed its border with Spain
Closures are feared throughout the industry, and it isn’t the only one to be hit hard by the crisis.
The firm behind Paddy Power and Betfair has warned it faces an ‘unprecedented’ challenge as sports matches and leagues are cancelled because of the Covid-19 outbreak.
Flutter Entertainment, which gets nearly 80 per cent of its revenue from bets on sporting events, said its accounts will be seriously dented.
All Premier League football games have been postponed in England until the beginning of next month, while the major leagues in Spain, Italy, France and Germany have been indefinitely suspended.
A man wears a ventilator mask and rubber gloves as he waits for a friend at Euston Station in London. Others are seen on their phones and waiting outside the station
Horse racing is continuing, although behind closed doors in places, but many major sports have been suspended in the US. The European football championships, Euro 2020, are also likely to be postponed, Flutter said.
‘This will obviously have a material impact on the revenue and earnings of the group,’ it said in a statement to shareholders on Monday.
Chief executive Peter Jackson said: ‘The challenge currently facing our business and the industry more widely is unprecedented in modern times.
‘Our focus, first and foremost, is on protecting the welfare of our employees and our customers and we will leave nothing to chance in this regard.’
Pictured: A man in Manchester city centre appears to wear protective gear during the crisis
As it does not know when the regular sports schedule will start up again, and which other sports might decide to follow suit, Flutter said it is difficult to gauge the financial impact.
But if restrictions are still in place until the end of August, and Euro 2020 is cancelled, full-year ebitda (earnings before interest, tax, depreciation and amortisation) will take a £90 to £110 million hit.
If horse racing fixtures are cancelled as well, and its UK and Ireland betting shops are forced to close, this could cost the company another £30 million per month in ebitda. Analysts at Jefferies had previously expected ebitda to reach £428 million in 2020.
Mr Jackson said: ‘While our near-term profitability will be impacted by the essential measures being taken globally, the board will remain focused on protecting shareholder value and managing the business through these turbulent times.’
Business owners based in Chinatowns across London, Birmingham and Manchester are reporting takings are down a whopping 75 per cent since the outbreak began.
As a result several restaurants and takeaways have been closed down, while others are axing staff in a bid to cover costs.
Staff members have also reported being racially abused by customers shortly before the Chinatown areas of their cities turned into ghost towns.
Managers of the affected restaurants are now trying to reassure the public they cannot catch COVID-19 from Chinese food as they battle to save their businesses.
James Wong, 45, is the managing director of the Chung Ying Restaurant group in Birmingham and chairman of Southside Business Improvement District.
He said: ‘I’ve seen takings in my Chinese businesses dropping 70-75 per cent. We are crying out for support after being one of the hardest hit sectors for five weeks.
A man is pictured entering a coronavirus testing centre in London as the crisis continues to grip the country
‘At this moment in time I beg people to keep a sense of perspective – you won’t get coronavirus from Chinese food.
‘Certain places in Chinatown have been affected really badly because it’s been a ghost town for five weeks. We need to stick together and ride it out for the long term.
‘I’m meeting the representatives from the Combined Authority to get clarification on what measures are available to the hospitality sector.
‘This week with the government’s announcements the effect has started to really hit home for my businesses.
Members of the public spotted today on the tube as the deaths from the pandemic increased today
‘So far I haven’t laid off staff or reduced hours like my rivals have done, but this week I have to think about some hard decisions.
‘I told my staff we can’t wear face masks because we will scare everybody away, but I said if you feel uncomfortable you can stay at home. In London’s Chinatown four or five restaurants are now closed.
‘On Chinese social media people are sending out fear messages and even spreading fake news, which is not helping. I don’t want to say how much I’ve lost but it’s a big amount.
‘I’m quite frustrated because I’ve got 70-80 staff who are reliant on me to provide for their families but this affects my family as well.
‘I’m trying my best to get people to come out, calm down and give moral support to Chinese businesses.’
Meanwhile, couriers for DPD, who deliver parcels for including Marks & Spencer and John Lewis, is offering just £94.25 a week to self-employed workers who need to self-isolate.
The statutory sick pay is far shorter than the £550 drivers with employment status are meant to earn over the course of a week.
Hermes will only pay £20 a day to drivers if they need to self-isolate and only if they usually earn less than £90 a day, the Guardian reports.
Unions have attacked ‘paltry’ offers of sick pay as they warned that it could keep them working rather than taking sick pay.