The UK’s hospitality sector has suffered over £53bn worth of lost sales this year, with more losses to come from the collapse of Christmas trading.
This is one of the key messages in the latest Future Shock report, from CGA and UKHospitality, which outlines the difficult year for the pub, bar and restaurant sector and sets out the challenges and opportunities facing the industry into 2021.
Research for the report, which draws on CGA’s business and consumer sources, shows the impacts of the pandemic and lockdown on UK hospitality.
Among the key findings are:
- A £53.3bn year-on-year drop in sales between the start of April and the end of September.
- Falling consumer confidence, with 78% of British adults concerned about the long-term financial implications of the pandemic.
- Hesitant business confidence, with 27% of leaders of multi-site groups predicting they will be unviable by mid-2021 with current levels of support.
- Bleak prospects for Christmas trading while 98% of England’s licensed premises remain in severely restricted Tier 2 and 3 areas.
But the Future Shock report also celebrates the hard work and achievements of operators and suppliers in 2020 – especially on keeping people safe.
It shows that 95% of consumers have been satisfied with the level of hygiene they have found in venues this year, and 55% now say they feel safer in hospitality venues than in shops and supermarkets.
The report also sets out trends and developments for businesses to track in 2021, including:
- An acceleration in consumer use of technology in restaurants, pubs and bars.
- A further increase in delivery sales—of alcoholic drinks as well as food.
- A continuation of the lockdown trend of eating and drinking close to home rather than travelling to city centres.
- Increased availability and affordability of property in the wake of business failures.
Karl Chessell, business unit director, retail and food at CGA, said: “This has been the most difficult year in hospitality that most of us have ever known, and our report is a chance to reflect on the havoc it has wrought – but just as importantly to look forward to what we all hope will be a happier 2021.”
He continued, “Sadly there have already been many business casualties in our sector, and more will inevitably follow as a result of the onerous limits on trading and socialising at what should be the busiest time of the year. But among businesses that have been able to sustain themselves, the pandemic has instilled a resilience and innovation that will stand them in good stead for years to come.”
Kate Nicholls, chief executive at UKHospitality, said: “Undoubtedly, 2020 has been a disaster for the sector. Every aspect of hospitality in every corner of the UK has come under enormous pressure and we are by no means out of the woods.”
She added, “There is, though, every chance that with the right support businesses can begin to trade their way out of danger and towards some degree of prosperity next year. The roll-out of a vaccine should give us all confidence that the next year will be dramatically better than this one.”
