Most hospitality businesses won't survive lockdown until May without further support

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The vast majority of operators (79%) will not be able to survive a lockdown until May without further Government support, according to the latest findings from Lumina Intelligence’s Hospitality Leaders Poll.

A small minority (7%) of those polled said they would not survive until May even with support from the Government, with only 5% of respondents saying they could survive without further support.

The findings come amid speculation that hospitality businesses could be forced to remain closed for much of the spring to avoid another rise in the R rate.

“Without extra government support perhaps further into the summer regarding furlough it will be difficult depending on when we get back and how social distancing if it remains,” said one pub owner.

“The continued reduction of VAT will be one of the ways to continue survival and business rate holiday/reduction.”

The latest poll of 267 business leaders from the restaurant, pub and food-to-go sectors also paints a picture of how damaging tighter restrictions concerning takeaway collections would be should they be introduced as they have been in Scotland.

If takeaway collections are banned under tighter restrictions, 84% of operators polled said delivery would not be viable option for their businesses.

The majority of operators polled have also been forced to borrow money in order to survive, with over half (52%) saying that they have already borrowed money ad a further 16% saying they intend to borrow to keep trading beyond the pandemic.

The weekly poll, conducted by Lumina Intelligence for BigHospitality, Restaurant, MCA, and The MA, also found that just 3% of the operators asked are ‘very confident’ in the future of their business.