Loss of almost 6,000 licensed premises in 2020 will be ‘tip of the iceberg if we continue on current course’, warns UKHospitality: The number of licensed premises fell by a net figure of almost 6,000 in 2020 – a 5.1% contraction of the market versus 2019 – but it is “going to be the tip of the iceberg if we continue on our current course”, UKHospitality has warned. Research from the latest Market Recovery Monitor from CGA and AlixPartners showed there were 9,930 permanent closures and 3,955 openings, which represented a 175% increase on the 2,171 drop in the number of sites that shut in 2019. The Market Recovery Monitor measures the scale of the damage wrought by the pandemic on hospitality businesses, and forecasts many more closures in 2021. It highlighted the significant impact on the casual dining sector, where total site numbers dropped 9.7% in 2020, and 3.8 permanent closures for every new opening. The community, food and high-street pub segments all saw numbers fall between 3.9% and 5.1%. The sports and social club sector, which has suffered from bans on events and socialising, recorded a decline of 6.2%. Karl Chessell, CGA’s business unit director for hospitality operators and food, EMEA, said: “With stop-start trading for much of 2020 and a widespread shutdown during what should have been a bumper Christmas, almost 10,000 licensed venues have not been able to make it through, and it is sadly inevitable thousands more casualties will follow. After such a bleak Christmas, it is difficult to be optimistic about the market. But consumers are desperate to get back to eating and drinking out, and we can be confident footfall and sales will return when the sector can finally reopen. There are better days to come, but the sector will be in survival mode for some time yet.” UKHospitality chief executive Kate Nicholls said: “The loss of 6,000 premises is a dreadful blow to this country’s hospitality sector, but it is going to be the tip of the iceberg if we continue on our current course. One-in-five businesses say they do not have enough cash to last beyond February. If we have the right support in place now, it will make the job of recovery much more achievable once we are in a position to reopen again. The forthcoming Budget must be a one that delivers a bold, wide-ranging package of financial support to ensure as many businesses as possible are saved. The VAT cut and business rates holiday extensions must be top of the menu.”