Hospitality reopening weekend spend down 45% on previous year

By Andrew Catchpole

Published: 08 July, 2020

Despite a big bounce in transactions as many pubs, bars and restaurants reopened their doors on the weekend, overall spend was down across the hospitality, leisure and entertainment sector by 45% compared with the same weekend in 2019.

The figure, covering Saturday 4 and Sunday 5 July, is based on transactions through the Barclaycard Payment system, which account for almost 40% of all card payments of any type in the UK.

However, that figure also has to be offset against CGA Outlet Index data that revealed 18,277 of a possible 40,575 pubs and bars that could have reopened over the weekend did so, equating to 45% of market.

The Barclaycard Payment data revealed that those that did open drove a 295% jump in value spend in pubs and bars over the previous weekend, plus a more modest 13% uptick in restaurant spend, but with that latter figure having to be offset against revenues generated by takeaway and delivery services during the physical closure period.

While the 45% figure covers value spend across the whole hospitality, leisure and entertainment sector – some of which remains closed – early reports from on-trade operators vary widely, with pubs, bars and restaurants that are open operating at anywhere between 50% and near 100% of ‘normal’ turnover for the time of year.

Many on-trade businesses, including the likes of the D&D London group, have told Harpers that bookings have been near full since reopening, with strong bookings in the days and weeks ahead. But the impact of social distancing measures is preventing businesses from operating at full capacity, causing much concern over the viability of many venues in the weeks and months ahead.

New research published by Simply Business on 7 July has estimated that small hospitality businesses operating in food and drink will on average lose £21,586 in lost work, earnings and loan repayments as a result of Covid-19.

“While this weekend certainly gave us reasons to celebrate, we’re not out of the woods yet. We know that our clients are doing their utmost to incorporate social distancing measures into their operations in order to maximise revenue, while also keeping their customers safe,” said Rob Cameron, CEO of Barclaycard Payments.

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