On Saturday, England was given a sufficiently startling Halloween night when Boris Johnson broke the speculation that a month-long national lockdown would be taking place from Thursday 4th November. This means that, like March, pubs, restaurants, and non-essential retail will have to close, as well as gyms, salons, and other leisure industries. Differently, schools, universities and colleges will remain open.
But what does this mean for the hospitality industry? Because of the impact of the first lockdown, as Sir Rocco Forte, chairman of Rocco Forte Hotels, said: “the hospitality industry is already on its knees.”
“You can have furlough and other schemes which reduce the business outgoings, but if you have no income you can’t survive. It’s a never-ending nightmare – the second lockdown is a disaster.”
“the industry is relying on generating a large turnover in the run up to Christmas in order to make back some of the income that they lost earlier in the year; and in the summer at the hands of local lockdowns.”
November and December are two of the busiest months of the year for the retail and hospitality sectors. Christmas shopping and parties or celebrations with friends and family generate a huge revenue for these industries; industries that do not think they can survive if they lose this important business.
An August survey by UK Hospitality, a trade body, found that 75% of hospitality businesses were at risk of becoming insolvent. This would mean that the industry is relying on generating a large turnover in the run up to Christmas in order to make back some of the income that they lost earlier in the year; and in the summer at the hands of local lockdowns.
Kate Nicholls, the chief executive of UK Hospitality, said: “a third of our turnover would normally be generated between Halloween and Christmas Eve. We’re going to lose nearly all of that.”
Nicholls, who represents 800 businesses operating 90,000 venues, emphasises the thin ice that this industry is already on, arguing that “a further national lockdown will only accelerate the closure rate and business failure rate unless we get significant additional support.”
“the latest data shows that hospitality is linked to very few Covid-19 incidents in England”
Some argue that the evidence proves that the hospitality industry, especially pubs, are Covid- secure.
Indeed, the latest data shows that hospitality is linked to very few Covid-19 incidents in England. Last week, a survey of 22,500 pubs, bars and restaurants across the UK showed that there were only 275 NHS Test and Trace incidents. This is about 1%.
Furthermore, statistics from Public Health England show that hospitality is linked to just 2.7% of all Covid-19 incidents in England. This is remarkably small compared with the 32% in care homes and hospitals.
It would seem that the financial impact is a lot larger than infection impact for hospitality- and yet it is still being forced to suffer at this crucial time of the year. There is also going to be a huge impact on young people who majorly staff this industry- especially those of school leaver and university age. It is predicted that between 30 and 50% of these people will be soon facing unemployment due to establishments struggling.
A young student and hospitality worker, 19 from the East Riding of Yorkshire, has her concerns about the second lockdown and what this means for restaurants like the one she works in and relies upon for a wage. She said:
“In my opinion, the industry is dying. Luckily my place of work does deliveries and takeaways so is more likely to stay afloat during lockdown; however some places do not have that luxury.”
When asked how the public can help support the hospitality industry during the second lockdown, she suggests that
“If a restaurant/bar/pub near you is offering deliveries or takeaways, try to buy a meal once a week to help out. Also, if there is any way to donate money and help the business then do.”
Of course, the statistics above only consider those young people who are already employed in hospitality- but what about those who are not and are trying to attain a job?
Myself, a recent University graduate with academic plans on hold due to Covid-19, I have been trying to gain a job in hospitality, of which I have experience, only to find it remarkably hard. Places simply do not have the finances to take on more staff or, as happened to me just this week, staff have even worked one shift before being told that the restaurant, because they will be closed in a few days, are no longer hiring.
The impact of this lockdown has so many clear and disastrous consequences for an already suffering industry. An industry that supports so many workers, including young people, and that relies on business from this time of year to keep them afloat. An industry, in other words, that will be left crippled after this second lockdown if it survives at all.
Amelia Cutting
Featured image courtesy via Pixabay. Image license can be found here. No changes were made to this image.