Hospitality boss shares fears as industry faces yet more chaos
A hospitality boss’ has warned businesses won’t make it through the next quarter without proper financial support from the government.
Iain Hoskins, the owner of Ma Boyle’s Alehouse & Eatery, the historic Liverpool waterfront bar, has already had to close two sites during the first lockdown and said the move to Plan B has led to a loss of £50,000 across its business in cancelled bookings over the festive season.
He said: “We spent so much time and effort in the build up to this Christmas. It was imperative to maximise this period.
“Anyone in the industry will tell you how labour intensive it is when dealing with a season of people planning all types of parties and sit-down meals; each one is different and often you can be dealing with one large booking between 20 and 30 times to make sure all the details for their party are right.
“It’s a huge amount of work.
“We threw everything at it this year, making sure we fully maximised the season, doubling marketing budgets and staff involved with both our Liverpool venues. It’s essential for our survival.”
Plan B, announced two weeks ago, saw a return to work from home guidance and the expansion of mask wearing into some indoor settings, however hospitality is still exempted.
Mr Hoskins went on to say: “The first government advice on the new variant nearly two weeks ago had an immediate impact on Christmas party bookings and table reservations.
“In terms of corporate clients, they were telling us that Christmas parties were not a good look for them and despite what the government said, how could they ask staff to work from home but then bring them back to mix in a very much non-socially distant Christmas party?
“So even for the parties which have gone ahead, the numbers have been often 50% of what was predicted. There’s also a feeling that for a significant proportion of people just don’t want to take the risk and would rather sacrifice a Christmas social occasion rather than risk getting sick or jeopardising Christmas Day with their family.”
Restaurants and pubs are also concerned about further Covid restrictions after the health secretary, Sajid Javid, refused to rule out tighter Covid restrictions before Christmas.
Kate Nicholls, CEO of trade body UK Hospitality, said: “Trading has already been hugely damaged by the steady stream of pessimistic news following the discovery of the Omicron variant, at a time when hospitality would normally expect to be making a quarter of its annual profits.
“We know from previous lockdowns that it causes venues to haemorrhage cash. It costs £10,000 to close each site and a subsequent £10,000 per month on overheads, and that was with full furlough and rate relief.
“The damage that closure wreaks on consumer confidence would also increase recovery time considerably, not least because it would be coming early in the year, at the slowest period of trading. Hospitality venues have invested huge amounts of money and resources to ensure a safe environment for customers and staff alike.
“Throughout the pandemic, businesses have always wanted to trade their way through to recovery and that sentiment is stronger now than ever.
“However, trading levels are so poor that the need for proportionate Government support is already acute, and urgently necessary if businesses, jobs and livelihoods are to be secured.
“An extension to business rates relief and the lower VAT rate will help longer term planning and budgeting but speedily delivered grants will be vital to short-term business survival.”
She added: “To minimise further damage, it is also crucial that the Government gives as early a signal as possible about whether measures are to be imposed and what they might be, in order to allow businesses to salvage something from Christmas and the New Year.”
Sacha Lord, the night-time economy adviser for Greater Manchester has also launched a campaign to reverse the hospitality VAT increase in light of the move to Plan B restrictions.
