Three-quarters of hospitality businesses could close in 2021

Hospitality and pub trade bodies have revealed that 72% of sector businesses expect to become unviable and close in 2021, highlighting the support these companies need from the government if they are to survive the pandemic. 

UKHospitality, the British Beer & Pub Association and the British Institute of Innkeeping surveyed their members, with results finding the tiered system used across England was particularly damaging hospitality businesses.

Under tier one restrictions, only 25% of operators said they could turn a profit; under tier two restrictions, 76% said they would be unviable or operating at a loss; and for hospitality businesses having to operate under tier three restrictions, the survey found that 94% would be unviable or operating at a loss.

“The evidence is here to see of the devastating, long-term impact the government’s restrictions are having on hospitality and pub businesses," says a spokesperson for the three organisations.

“Without a change in approach and more support from government, much of our sector could be gone within a year – that means businesses and jobs lost plus much-loved venues closed forever.

“We recognise that local restrictions will need to be based on local risk levels, but to ensure our sector can bring people together properly this Christmas and beyond, and crucially provide them a safe environment to socialise in, we believe the tier system should be fine-tuned.

"That means relaxing the ban on more than one household in tier two and extending the 10pm hard curfew cut-off point.

“Those pubs and hospitality venues facing tier three restrictions currently have an impossible task of trying to remain viable as businesses."