Hospitality bosses to exclude London from future growth plans after pandemic
More than four in five hospitality bosses said they will avoid city centre locations such as London in their future growth plans following a drop in footfall, the latest research showed.
Three quarters of respondents to the survey said they will adapt to the widespread switch to working at home.
Meanwhile fewer than ten per cent of restaurant and pub bosses are confident in market prospects over the next 12 months due to the impact of the coronavirus pandemic, the latest research has found.
A survey carried out in the first three weeks of this month showed that the number of leaders feeling confident about the general market has dipped to nine per cent, half the level in June and a sharp decline compared to the four-year high of 60 per cent at the start of the year.
Multi-site operators were more optimistic in comparison to independent venues, according to the CGA report, with the Eat Out to Help Out scheme boosting confidence among larger hospitality firms.
Two thirds of leaders said trading had been above expectations since they reopened, with 18 per cent reporting worse than expected sales. Sales were boosted by staycations and hot weather throughout August.
However the new restrictions announced last week, such as the 10pm curfew, are likely to have an impact on confidence going forward. Nine in ten leaders think fragile consumer confidence will have a negative impact on the market while 79 per cent are worried about a squeeze on disposable incomes.
CGA’s research and insight director Charlie Mitchell said: “The last six months have been the most challenging that the out-of-home eating and drinking sector has ever known, and the government’s latest restrictions mean conditions are likely to remain very tough for the rest of 2020.
“The Eat Out to Help scheme has been a springboard to recovery for some multi-site groups, and the green shoots of confidence among leaders are very welcome, but it is clear that many independents face a battle for survival.
“In the face of so many headwinds, the fresh backing that was announced this week on jobs, loans and VAT is welcome, though whether it goes far enough remains to be seen.
“This is a resilient and adaptable sector, but it deserves extended support from government if it is to sustain businesses and protect jobs in the coming months.”