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Pandemic Hospitality Update Winter 2021

hospitalityNearly 300,000 jobs in the UK hospitality sector were lost between February and November last year.  Over £53 billion was also lost in year-on-year revenue between April and September.  The lack of Christmas trading will be an additional huge loss.

According to the IWSR, global sales of alcohol fell by 8% in 2020 whilst the UK Off trade alcohol sales grew by over 16%.

The American Beverages Licensees group has warned that the US pandemic funding bill has failed to provide sufficient support to save their bars and restaurants.  Over 909,000 jobs in the sector have already been lost and 110,000 restaurants closed.

An All Party Parliamentary Group has been formed to address the problems faced by the UK night-time economy which is facing collapse.  MPs have voted in favour of creating a Minister for Hospitality following the submission of a petition with over 200,000 signatures.  A £1,000 grant has been agreed for all drinks led venues that have been forced to close.

UK based charity The Drinks Trust has provided £1.2m this year in support of industry workers.  They have also launched an online networking platform called the Drinks Community for members of the trade to connect and share information.

The World Spirits Report expects the trade to recover by the end of 2022 and then we will see something akin to the ‘Roaring 20s’ when hedonistic revelling followed the end of the Spanish flu pandemic.  UK Freixenet Copestick has shown its confidence in the future of the industry by purchasing On Trade wine merchant Jascots.

Our Autumn industry update can be read here.

CV-19 Hospitality Update in Brief

Hospitality► The number of licensed premises currently trading across Britain is 25,000 down on pre-Covid levels, according to the latest report from CGA & Alix Partners.

► The Cancel the Curfew campaign is being led by on-trade operators in England & Wales, who have written to the Prime Minister warning that the 10pm curfew will result in “the end of the hospitality industry as we know it”.  Pubs, bars and restaurants are reporting a 63% drop in revenue since the curfew was enforced.

► It is now a legal requirement that hospitality venues in England display QR codes, for users of the NHS Covid-19 app, as part of the Track and Trace system.

► On 15 September 2020, the UK High Court ruled that Hiscox & QBE must pay out on their disputed business interruption policies.  This could amount to more than £50m for unmet claims from the UK hospitality sector.

► According to the CGA, UK consumers in August 2020 favoured returning to pubs and restaurants over bars and late-night venues.

► The 2021 US Michelin Restaurant Guide has been put on hold whilst the ceremony announcing the UK & Ireland’s latest Michelin Guide has been put back to early 2021.  It will also be a digital-only publication for the first time in its history.

► Despite huge increases in the sale of alcohol at UK supermarkets, where shoppers have also traded up to more expensive wines, the overall UK consumption of alcohol halved during lockdown, according to Nielsen.

► Waitrose has reported that its online wine sales have grown 238% during lockdown and claims that the trend is unlikely to be reversed post-pandemic.

► Restaurants located in London’s commuter belt have recovered more quickly than those in the city centre, since being allowed to reopen in July.  More people working from home has been the key.