Coronavirus: The hospitality sector needs more support
The UK hospitality sector contributes £130bn to GDP per annum and is the third largest employer with 3.2 million workers. Although it is one of the UK’s sectors most brutally impacted by the Covid-19 pandemic, the level of support it has received so far from government is unfortunately not in line with its vital contribution to the UK’s high street and economy.
Lockdown has ensured that the sector should be under no illusions that it will operate as normal for quite some time – in fact, it will almost certainly be amongst the last sectors to return to full operation. It will be a case of months rather than weeks.
For this precise reason, it is more important than ever that the Government widens its supports for the hospitality sector.
The current government measures in place, including furloughing, business loan support schemes and cuts to business rates and National Insurance, have provided much needed support for businesses, but they are not enough for the hospitality and leisure sectors to survive in the medium to long term.
This is because currently, the measures do not include rent support of any kind, relying on landlords and tenants to find a solution that is not forthcoming. Whilst negotiations may have led to some landlords changing billing dates, operators must still pay rents over the ensuing 6-9 months when we almost certainly will not be able to generate any income from sales.
We need a more satisfactory solution around rents that operators, banks and landlords can all work with. We have seen Jonathan Downey’s #NationalTimeOut campaign for a 9-month rent-free period for hospitality businesses gain support from many, as the magnitude and length of time support will be needed has become better understood.
There isn’t much time to sort this out. If the sector isn’t properly supported now, many, if not most, hospitality businesses simply won’t exist when this is all over. The outcome could result in severe changes to our social lives.
If anything, lockdown has proved the need to protect our late-night venues more than ever. While essential to helping curb the spread of the virus, it has meant that people have been stripped of fun! It seems that lockdown for many has consisted of working; either doing their jobs remotely or helping to educate children from home. Whilst I applaud the many creative ways people have been socialising online (I think most of us have attended Zoom ‘virtual drinks’), it simply does not live up to the experience, and the anticipation, of going out to a pub, bar or club on a Friday night as a well-deserved treat after a hard-working week.
The hospitality sector is starting to actively plan for the return to ‘normality’, whenever that may be, by thoroughly researching and implementing mechanisms to ensure the public feels safe and confident in pubs, bars, and clubs across the UK.
For us, this includes considering the implementation of thermal cameras upon entry, the introduction of single use drinking vessels as well as the more obvious measures of increased cleaning, hand sanitisers etc.
Many questions remain though, a number of which are of concern to all clubs, pubs bars and restaurants. How can we truly ensure that all customers adhere to social distancing, and how can venues operate social distancing with toilets!? It cannot work.
The most important thing for us at the Deltic Group is to give our customers confidence, especially given the nature of our business. Their safety is our number one priority and until it is safe to do so we will not restart operations.
One thing is for sure, we know that our customers are excited to return to our clubs to enjoy a much-deserved night out, and we look forward to welcoming them back as soon as we are able to.
It’s therefore important that the right measures are in place to protect the hospitality sector during this time, because, quite simply, we’ll all deserve a pint or two once this is over.