Government launches strategy to support reopening and recovery of sector: A new strategy to ensure the UK hospitality sector “can thrive long-term and adapt to consumer demands” has been launched by the government. The Build Back Better: Hospitality Strategy focuses on the “Three Rs” of reopening, recovery and resilience. Reopening is backed by measures including highlighting opportunities in the hospitality industry to jobseekers and helping the sector address current recruitment challenges. The government said it was continuing to support hospitality businesses through its £352bn package of economic support and by publishing further guidance this week to help venues operate. Recovery measures include working with the government-owned British Business Bank and directly with lenders to support access to finance for hospitality firms so they can invest in their businesses. The government is also setting out ways to help the sector improve its resilience, including making hospitality a career option of choice, boosting creativity, and developing a greener sector. These include a potential new T Level to boost skills in the sector, bringing businesses together with universities to boost innovation, and reducing waste and plastic consumption. A new Hospitality Sector Council made up of industry leaders and government is being created to oversee the delivery of the strategy. The council will be co-chaired by business minister Paul Scully and Karen Jones, executive chair of Prezzo, chair of Mowgli and Hawksmoor, and non-executive director at Deliveroo. Further members will be announced in due course. UKHospitality chief executive Kate Nicholls said: “The pandemic has devastated the hospitality sector and businesses are desperate to bounce back strongly and return to profitable trading. That’s why the launch of this hospitality strategy is so important – it offers a strong platform to deliver the supportive regulatory and trading environment we need to recover, rebuild resilience and thrive. Ultimately, this strategy sets out a positive vision for the future of hospitality and how a thriving sector can help regenerate high streets and tourism destinations across every part of the country. We look forward to working closely with government to deliver a plan of action.”
Equivalent of 25 licensed premises shut permanently every day in past year as market contracts 8%: The equivalent of 25 licensed premises have shut permanently every day in the past 12 months, according to the latest data from the Market Recovery Monitor from CGA and AlixPartners. Britain had about 106,000 licensed premises – more than 9,000 venues fewer than the total number of venues in June 2020. This equates to an 8% contraction of the market in just 12 months. It comes as almost 12,000 of Britain’s licensed premises are finally able to reopen on Monday (19 July) when covid-19 restrictions on hospitality venues are lifted. The monitor showed, while just under 89% of all known UK hospitality venues were open by the end of June 2021, 11,928 sites have yet to reopen and the hope is many will do so on Monday. The lifting of remaining restrictions is significant for the late night-market, which is one of the last remaining hospitality sectors to have been given the go-ahead to reopen. Sports and social clubs are also set to benefit, having been hard hit by social distancing requirements. Almost one third (31.2%) of large and late-night venues and more than one fifth (22.9%) of sports and social clubs were still closed as of the end of June 2021. The lifting of remaining restrictions also brings welcome news for the independent sector, where 11,092 licensed premises remained shut as of the end of June. CGA research indicates hospitality industry sales have been broadly modest this year, with many businesses struggling with rising costs, staff shortages and fragile consumer confidence. Karl Chessell, CGA’s director for hospitality operators and food, EMEA, said: “With so many venues still closed and restrictions still in place, it will be a very anxious wait to see how many are able to reopen. Hospitality has already lost more than 9,000 sites during the covid-19 crisis, and sustained government support is essential to prevent further damage.” AlixPartners director Craig Rachel added: “Operators face a summer of dealing with recruitment difficulties and staff absences due to self-isolation, combined with the tapering away of government support and tackling huge levels of debt. It promises to be a long road to recovery for hospitality.”
AlixPartners is a Propel BeatTheVirus campaign member