So, 2021 has started in a similar vein to 2020 leaving operators across the hospitality industry facing significant challenges, with takeaway or delivery their only revenue options. However, with the vaccine rollout moving swiftly, there are reasons to be more optimistic, right? While the rollout of the vaccine provides a glimmer of light at the end of the tunnel, the stark reality of a six-week (minimum) lockdown to bring in the New Year quickly adds perspective.
With murmurs suggesting that this lockdown will last longer than six weeks, when can we realistically expect to see hospitality operators welcome dine-in consumers again? Have operators been adversely impacted by the added restriction banning takeaway alcohol? Is the new grant that has been offered to operators enough? After a short hiatus, our Hospitality Leaders Poll, in partnership with Big Hospitality, MCA News and Morning Advertiser, is back. This week, we surveyed 275 board level operators running pubs, restaurants and food to go operations. Here’s what they had to say…
Only one-in-ten expect to open dine-in operations before April
With Lockdown 2.0 given a clear timeframe (November) and Lockdown 3.0 indicated to last 6 weeks, taking us to mid-Feb, it could easily be presumed that we will fall back into the three (or four?) tier system and those in tier two may be able to welcome some customers soon. Unfortunately, the majority of operators do not see this being the case. 66% do not believe that they will be able to open their dine-in operation before April and 21% are unsure.
The UK is at a crossroads in its fight against the pandemic – the vaccine provides hope, but whilst the rate of infections and deaths continues to grow, murky waters lie ahead. This uncertainty will continue to wreak havoc across the supply chain, with wholesalers effectively guessing their way through demand planning.
42% affected by the ban on takeaway alcohol
In contrast to previous restrictions, takeaway alcohol is banned during this current lockdown. For brewers and pubs that are unable to offer delivery, this leaves them with excess stock that is likely to go to waste. In fact, 15% of operators said that this change has significantly affected their business and a further 27% saying that it somewhat impacted them.
It is clear that the government is trying to limit the opportunities to bend the rules, but with alcohol easily accessible through the supermarkets, those that intend to break the rules and drink in public with friends are, arguably, still likely to do so. This poses the question – will a ban on takeaway alcohol have any sort of a desired impact?
New grant offers some relief to operators
Following the enforcement of the latest lockdown, the government announced that businesses in the retail, hospitality and leisure sectors are to receive a one-off grant worth up to £9,000. Whilst this will come as welcome news, it will not get close to the revenue losses experienced over the festive period and beyond for the vast majority of operators – a view that seems to be echoed by business leaders, with only 13% indicating that the grant will significantly help. 76% said that it will provide some help, but 11% said that it would provide no help at all.
Hospitality offers a hand to support vaccine rollout
Following the news of some major retailers and operators, such as Asda and BrewDog, working with the government to offer space to speed up the vaccine rollout, we asked leaders from across the industry if they were willing to do the same. 76% of operators said that they would offer their venue as a vaccination centre if it meant a quicker rollout and return to normality.
Whilst the carrot here would be a quicker return to normality and businesses re-opening, this is a true testament to the community spirit of our industry, which has – and continues to – face the full force of restrictions.
The Lumina Intelligence Hospitality Leaders Poll surveys board level operators running pubs, restaurants and food to go operations across the UK.