A third of restaurant and pub bosses have said they expect to permanently close sites as a result of the coronavirus pandemic.
A survey of more than 120 senior executives for pub, bar and restaurant companies revealed that 32% said they anticipated the need to shutter sites for good.
The CGA business confidence survey, which was conducted with technology specialists Fourth, also revealed that bosses in the sector remain ‘deeply pessimistic’ about the future of the hospitality market and their own businesses.
A survey of more than 120 senior executives for pub, bar and restaurant companies revealed that 32 per cent said they anticipated the need to shutter sites for good. Above: Manager Lee closes the bar at the White Hart in Ironbridge, Shropshire on March 20 as pubs began lockdown
Pubs closed across the country on Friday 20 March with revellers packing into venues to enjoy a final pint following Boris Johnson’s order for all pubs, clubs, theatres, cinemas, gyms and sports centres to close.
The survey also showed that the majority of bosses are not expecting to reopen until June or July, if allowed, and then taking a phased approach.
Only 36% of leaders said they believe they will eventually re-open all of their sites for trading, according to the survey.
‘The size and shape of the eating and drinking out market is projected to look very different post-lockdown,’ said Karl Chessell, director of food and retail at CGA.
‘The offer will inevitably change as leaders have to change their operating model to thrive once they open their doors again.’
The vast majority, 81 per cent, of operators in the sector said they have now started recovery planning.
Most businesses will be starting recovery from scratch, as only 27% of those surveyed said they had any sites still open.
Drinkers enjoyed a last tipple on March 20 (Above, at a bar in Newcastle) before lockdown began
More optimistically, two thirds of bosses said they believe it will take them less than two weeks to get their sites ready to trade after lockdown is lifted.
James England, senior vice president at Fourth, said: ‘With great swathes of workers on the job retention scheme, businesses are focused on driving engagement with their teams, supporting health and wellbeing and retaining the best workers.
‘Social distancing and the fallout from the pandemic will demand that businesses take a fresh look at their operating models and, of course, labour productivity and increased automation.
‘Ultimately, hospitality’s post-Covid-19 complexion will look fundamentally different to the start of 2020, but we are a resilient industry that will evolve, adapt, innovate and overcome the challenges presented.’
The survey comes as Boris Johnson today announced he is hoping to begin easing the UK’s coronavirus lockdown on Monday as Matt Hancock suggested cafes could reopen if they have outdoor drinking areas.
The Prime Minister said some measures will be lifted from the start of next week if the latest scientific evidence shows the spread of the disease is sufficiently under control.
The PM will renew social distancing restrictions on Thursday before using an address to the nation on Sunday night to set out his lockdown exit strategy.
He is pushing ahead despite today admitting the UK’s death toll, which is closing in on 30,000 and is the worst in Europe, is ‘appalling’.
Mr Johnson said the Sunday address would prepare people for potential changes on Monday but the specifics remain a secret.
However, Health Secretary Matt Hancock gave a hint as to what could be expected as he suggested cafes with outdoor seating could be allowed to reopen in certain circumstances.
He told Sky News: ‘There is strong evidence that outdoors the spread is much, much lower, so there may be workarounds that some businesses, for instance cafes, especially over the summer, may be able to put into place.’
His comments are likely to prompt questions as to whether pubs could also be allowed to reopen over the summer if they have outdoor facilities.
The Prime Minister’s words, before pubs and restaurants closed their doors, on March 20 were beamed out to revellers throughout the UK who had headed to the pub after a week at work, while others rushed to the supermarket to stock up on booze.
Mr Johnson warned those going out could become ‘vectors of the disease for older relatives with potentially fatal consequences’.
The survey comes as Boris Johnson today announced he is hoping to begin easing the UK’s coronavirus lockdown on Monday
He added: ‘I do accept that what we’re doing is extraordinary – we’re taking away the ancient inalienable right of freeborn people of the United Kingdom to go to the pub.
‘And I can understand how people feel about that.
‘But I say to people who do go against the advice that we’re getting, the very clear advice that we’re getting from our medical and scientific experts, you know you’re not only putting your own life, the lives of your family, at risk – you’re endangering the community.
‘And you’re making it more difficult for us to get on and protect the NHS and save lives.