New tiered restrictions will cost hospitality firms across the country up to £7.8billion and allow very few businesses in the sector to operate normally, according to new analysis.
Recruitment website Caterer.com estimated that pent-up demand for meals and drinks could have delivered as much as £15.9billion to the UK economy when the current lockdown ends on Wednesday.
It found that a quarter of 2,000 adults it surveyed were planning to spend more than usual at pubs, bars and restaurants and suggested this meant that if they were allowed to trade freely, they could receive around £10.2billion in spending.
The hospitality industry has widely condemned the government’s upcoming tiered restrictions over concerns that it could potentially cause massive job losses
The limitations, which are due to take effect on Thursday, will require all English pubs, bars and restaurants in the highest tier to shut except for takeaways, while those in Tier 2 can only remain open if they serve ‘substantial meals.’
Tier 1 is the least restrictive but pubs are still required to close at 11pm and last orders for drinks must be made before 10pm.
But while England is loosening restrictions, the Welsh government has declared that from Friday, hospitality establishments will be banned from selling alcohol and be subject to a 6pm curfew.
Covid-19 infections have soared in Wales over the last ten days from 160 per 100,000 to 210 per 100,000 and First Minister Mark Drakeford stressed the measures were needed to give the country enough ‘headroom’ to relax restrictions in time for Christmas.
These restrictions have received widespread condemnation from the industry over concerns about potentially massive job losses and the perception that hospitality places are being unfairly labelled as hotspots for spreading the coronavirus.
In addition, there has been confusion about the government’s incoming rules for the industry, especially over what counts as a ‘substantial meal.’
Very few places will go into Tier One when the national lockdown in England ends this week
Environment Secretary George Eustice told LBC Radio this morning that just eating a Scotch egg ‘probably would count,’ but Housing Secretary Robert Jenrick has previously remarked that a Cornish pasty on its own would not be acceptable.
Contradicting what No.10 said on Friday, Eustice also claimed that diners do not have to leave their table once they have finished eating their food even if they still had more to drink, though he insisted to Sky News: ‘You can’t sit at a table all night ordering drink.’
In its findings, Caterer.com stated that while the return of customers would have delivered a much-needed festive boost for the struggling industry, much of the sector now faces crisis amid a tighter tiered system and tougher restrictions.
Caterer.com spokesman Neil Pattison: ‘The impact of the tighter tiered system…will not only lead to a multi-billion pound loss for the sector, but could force many thousands of our talented workforce to look elsewhere for work’
Spokesman Neil Pattison said: ‘It’s clear that the public are incredibly keen to get back to enjoying hospitality venues, but this analysis reveals just how damaging the new Government restrictions will be for our sector.
‘The impact of the tighter tiered system – which will force businesses in Tier 3 to remain closed unless they offer takeaway, and only allow those that serve food to operate in Tier 2 – will not only lead to a multi-billion pound loss for the sector, but could force many thousands of our talented workforce to look elsewhere for work.
Pattison urged the goverment to give more financial support along with ‘greater flexibility in restrictions that will allow businesses to continue to trade.’
The Daily Telegraph reported today that Prime Minister Boris Johnson could grant extra financial support for pubs and restaurants, with a government source telling the newspaper: ‘We recognise that we need to do more.’
Among the businesses that have announced redundancies in recent months include Mitchells & Butlers, who announced its intention last week to axe 1,300 jobs on top of its statement a fortnight ago that it was closing up to 20 pubs and restaurants.
Beefeater parent company Whitbread announced 6,000 job cuts in September due to the damage caused by the lack of customers at both its hotels and hospitality outlets. Fuller’s, Marston’s and JD Wetherspoon have also slashed positions.
JD Wetherspoon owner Tim Martin has written a letter to MPs today accusing Boris Johnson of creating ‘economically ruinous policies, with no health benefits’
Wetherspoon owner Tim Martin has been one of the most vociferous critics of the government’s lockdown plans and has written a letter to MPs today accusing Boris Johnson of creating ‘economically ruinous policies, with no health benefits.’
He added: ‘A pub licence, unlike a restaurant licence, allows you to sell beer, wine and spirits ‘for consumption on the premises’, without a table meal – and this is now prohibited.
‘The reality is that pubs in Tier 3 will be physically shut from December 2 and pubs in Tier 2, if they open at all, will be trading as restaurants, not pubs.’
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