Most businesses now planning for life after lockdown: survey
CGA and Fourth’s latest study reveals that operators remain deeply pessimistic about both market prospects and the future of their own businesses.
Most businesses across Britain’s eating and drinking-out market are now actively engaged in planning for life after lockdown, the latest Business Confidence Survey from CGA and Fourth revealed.
Although the majority of over 120 executives and entrepreneurs surveyed are not expecting to reopen until June or July, if allowed, and then taking a phased approach.
“This is undoubtedly the most important business leaders' survey we've delivered in a decade,” said Karl Chessell, Director of Food & Retail at CGA. “At this critical juncture, how hospitality leaders plan for the recovery will be critical to the long-term success of their businesses.”
36% of leaders believe they will eventually re-open all of their sites for trading, with another third yet to decide on closures. Almost all expect to see a much-reduced market overall in the future, with somewhere between 70% and 80% of sites across pubs, bars, restaurants, late-night venues and hotels continuing to trade.
81% of operators say they have now started recovery planning, with most considering a range of different scenarios. But, 13% said they were still waiting for more information before starting, whilst only 5% did not currently have the capacity to plan.
Most businesses will be starting recovery from scratch, as 27% of those surveyed had any sites open, either for delivery (8%), grocery and food supply to the public (4%) or for NHS or community support (14%).
The vast majority (96%) of bosses expect a “phased reopening” for hospitality, with half believing that will be based on a number of criteria including sector, location and type of site. Only 4% expect a mass reopening.
62% are planning for a phased reopening of their own estates. However, 31% expect a full-scale reopening of their operations, but dictated by what the government allows.
On average, the respondents expected to see 69% of late-night operations, 71% of restaurants, 77% of drink-led pubs, 79% of pub restaurants and 85% of hotels to be left in business.
Two thirds of bosses believe it will take them less than two weeks to get their sites ready to trade after lockdown is lifted, including a third (33%) believe they can do it in less than a week, whilst another 22% anticipate a two to four week preparation period.
“Operators are increasingly focusing their thoughts on reactivation. While it’s not yet clear when the lockdown will be lifted, it is apparent that the market will have a fundamentally different outlook when it reopens. Reigniting dormant supply chains and accurately forecasting demand in the volatile climate of COVID-19 will require collaboration up and down the supply chain, across technology platforms and operator to operator,” James England, Senior Vice President at Fourth, said.
