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Hospitality loses £80bn of sales in 12 months

Published:  04 May, 2021

A staggering £80.8bn of hospitality sales have been lost in the past 12 months, according to the latest edition of the UK Hospitality (UKH) Quarterly Tracker compiled with CGA.

The Tracker shows sales from the start of April 2020 to the end of March 2021 totalled £46bn, down 64% on £126.8bn in the previous 12 months. 

The drop of £80.8bn is equivalent to around £220m of sales lost every day – or more than £9m every hour.

“It has been a catastrophic year for the sector and we are by no means out of the woods yet,” said Kate Nicholls, CEO of UKH.

“Hospitality’s ability to reopen will remain massively hampered until the government delivers on its commitment to dropping Covid restrictions and measures on 21 June. 

“Even then, with so many companies facing rent debts and business rates bills, after more than a year with little trading, many companies – and thousands more jobs – will be in jeopardy unless further support is forthcoming, particularly on tackling the rent debt crisis that threatens our recovery,” she said. 

The increase in employment across hospitality, which has suffered around 660,000 job losses in the last year, underlined the importance of the government to drop further restrictions on the industry’s ability to socialise and do business, Nicholls added. 

“Hospitality can help power the national economic recovery, providing jobs to people who have lost them, bring people back together for safe socialising and continue to serve those most in need in communities all over Britain. To do this however, we need to operate without the stranglehold of restrictions, and for the government to work with the sector on a recovery plan.”

Around 12,000 licensed premises closed in Britain between January 2020 and March 2021, according to The Market Recovery Monitor from CGA and AlixPartners.

Of those remaining, some sites have been able to reopen for outdoor service since 12 April but the vast majority will not be able to return for several weeks and, even then, will do so under restrictions until at least 21 June.