Latest rail strikes set to cost hospitality ‘nearly £400m’ in lost sales
The trade body estimates that strikes in this year alone have cost businesses close to £750m, and it believes that the total impact on the industry since the start of the industrial action nearly two years ago now totals £5bn.
“The cumulative cost of rail strikes continues to pile up for hospitality businesses,” says Kate Nicholls, chief executive of UKHospitality.
“There is never a good time for strikes, but this disruption will be particularly damaging. Families looking to enjoy the Easter holidays will now find plans disrupted and hospitality businesses trying to generate much-needed sales will see customer numbers dwindle.
“As April marks the cost of wages and business rates increasing annually by £3.4 billion for hospitality, businesses were looking to a successful Easter to help cover those new costs. That now looks like an increasingly difficult prospect.”
A rolling programme of national walkouts will take place over the weekend and culminate on Monday (8 April), with different train companies affected on each day.
Drivers are also refusing to work any overtime from Thursday 4 April to Saturday 6 April and from Monday 8 April to Tuesday 9 April.
Originally, walkouts on the London Underground were also planned for Monday 8 April and Saturday 4 May. However, yesterday (4 April) Aslef, the main train drivers' union, confirmed that they would no longer go ahead, with a spokesperson telling the BBC that ‘key issues’ had been ‘successfully resolved... without the need for strikes’.
The ongoing industrial action on the railways, which started in June 2022, has had a major impact on the hospitality sector and has led to some businesses, including steakhouse group Hawksmoor, launching meal deals on strike days to encourage diners out.
“Hospitality continues to suffer as collateral damage in this dispute and it’s putting at risk the many ways hospitality serves Britain – through offering great experiences, employing millions of people and putting billions of pounds into the economy,” continues Nicholls.
“This dispute has gone on for far too long and we need all parties to urgently get back round the table to negotiate. A solution that brings ongoing disruption to an end will be good for workers, businesses and the economy.”