£80.8bn loss for UK hospitality businesses in past year

UKHospitality Quarterly Tracker

[Credit: Angelo Pantazis on Unsplash]

UK: The latest data from UKHospitality and CGA reveals that around £220 million of sales were lost every day from April 2020 to March 2021, amounting to £80.8 billion in revenue.

The UKHospitality Quarterly Tracker with CGA shows that revenue in the last 12 months has been slashed by nearly two-thirds. Total sales between April 2020 to March 2021 was down by 64 per cent on £126.8 billion last year.

The Market Recovery Monitor from CGA and AlixPartners also reveals 12,000 licensed premises closed in Britain between January 2020 and March 2021. Some have been able to reopen for outdoor service since 12 April, though the majority will not be able to reopen until 21 June.

Kate Nicholls, CEO of UKHospitality, said: “It has been a catastrophic year for the sector and we are by no means out of the woods yet. Hospitality’s ability to reopen will remain massively hampered until the government delivers on its commitment to dropping Covid restrictions and measures on 21st June. Even then, with so many companies facing rent debts and business rates bills, after more than a year with little trading, many companies – and thousands more jobs – will be in jeopardy unless further support is forthcoming, particularly on tackling the rent debt crisis that threatens our recovery.”

UKHospitality has written to the government calling for action on the £2.5 billion rent debt faced by the hospitality sector. The following recommendations have been requested:

• Extending the protections for six months after Covid restrictions are removed, targeted at sectors that have been severely affected by the pandemic

• Expanding the protections to include all enforcement activity, and particularly County Court Judgments (CCJs) which undermine negotiations

• Developing a national-level adjudication process on ‘legacy rent debt’ that should aim to share the pain of closure (with at least 50 per cent of rent debt written off for this period, and at least 25 per cent written off when the sector operated under restrictions)

• For landlords and tenants to come to reasonable repayment terms, led by guidance and further protections if necessary

• Deals already agreed between parties would not be affected by any adjudication

Nicholls continued: “Hospitality can help power the national economic recovery, providing jobs to people who have lost them, bring people back together for safe socialising and continue to serve those most in need in communities all over Britain. To do this however, we need to operate without the stranglehold of restrictions, and for the government to work with the sector on a recovery plan.

“Our sector has suffered around 660,000 job losses in the last year. The increase in unemployment, particularly among younger age groups, underlines the importance of the government to drop further restrictions on our ability to socialise and do business,” she added.

The UKHospitality Quarterly Tracker is compiled by CGA, a measurement, insight and research consultancy, based on its Trading Index and OPM data on food and drink sales. It is combined with hotel data supplied by STR, fast food market data supplied by NPD Group’s Crest Panel, and direct company contributions complemented with ONS statistics.

Be in the know.

Subscribe to our newsletter »