Only 36% of operators expect reopening of all their sites for trading: study
Leaders are advised to determine what type of businesses are under pressure.
Only a third of business leaders in the pub, bar and restaurant industry are expecting they will eventually re-open all their sites for trading, with sites under threat as a result of the COVID-19 crisis.
According to CGA’s latest Business Confidence survey, another third (32%) of business leaders are already anticipating the need to permanently close sites, with the remaining third yet to decide.
“Industry estimates of the scale of closures vary widely, from below 10% to as high as 30% of total sites. The challenge for business owners, directors and planners – as well as industry investors and suppliers – will be to understand not just how long the casualty list will be, but which will be the worst hit areas, what type of businesses are most under pressure and how individual sites will pivot to new styles of operation,” said CGA group CEO Phil Tate.
Their latest study suggests that casual dining might be “more vulnerable” than other operations. The sub-sector, including independents as well as the branded chains, declined 3.1% overall in the year to March, and with its dependence on retail, business and urban locations “may need longer to recover than other parts of the market.”
Community pub numbers continued to decline by 3.7% last year, according to the data. But with home-working continuing and consumer research pointing to the public’s inclination to return to local establishments before heading back to city and town centres, these businesses may have an opportunity to win back trade.
“How the overall hospitality market reopens will be dependent on a range of factors: Government timetables, support and continuing restrictions; the financial strength of individual businesses; wider economic and business activity; the creativity of management teams; and the willingness of customers to return,” Tate added.
