Troubled pubs and restaurants are reporting the first signs of a recovery in trade, raising hopes that pent-up demand after a somber Christmas for the sector will soon be released.
Hotel bosses told the Guardian that revenue had picked up steam of late and that the easing of Plan B Covid restrictions – including removing work-from-home guidance – could further support the recovery.
As research revealed the UK was losing more than 8,000 licensed venues in 2021 – the equivalent of 13 a day – pub bosses warned the industry was not out of the woods and urged Chancellor Rishi Sunak to ‘repeat’ support for the sector to expand.
Among the first signs of recovery was a stock market update from Revolution Bars, which has 67 venues. Many of the office parties that were canceled in December due to Omicron concerns have been rescheduled for early 2022.
According to Chris Jowsey, chief executive of the 1000-strong Admiral Taverns chain, pub patronage is increasing, although he has called for further Treasury Department support to take advantage of the increased footfall.
“There’s some catching up to do because so much of Christmas has been cancelled,” he said. “Even last week we saw signs that people were starting to come back to the local and our trading last weekend was decent.”
However, he called on Sunak to extend the lower, temporary 12.5% VAT rate for hospitality establishments and to present budget plans to reduce draft beer levies planned for 2023.
Restrictions on socializing forced pubs, restaurants and hotels to close or drastically reduce capacity for much of 2020 and 2021.
Industry analyst AlixPartners figures released on Thursday showed a net loss of 8,228 food service establishments in 2021, down 7%.
The group reiterated calls for more government support, saying any recovery could be stalled by “rapidly rising food and energy costs, staff shortages and supply problems.”
While the recovery remains fragile, figures showed an apparent recovery in the last quarter of 2021, with the total number of licensed premises increasing by 1.6% between October and December by 1,672 to 106,880.
The rise was partly led by nightclubs, whose numbers rose 3.1% as they enjoyed the first lengthy phase of permission to open.
Growth in city center venues was particularly strong, with business venues leading the way in Edinburgh at 3.3%, Leeds at 3.9% and Liverpool at 4.4%.
A survey by data consulting firm CGA found that a third of people plan to increase the frequency of their evening events.
Kate Nicholls, chief executive of trade body UK Hospitality, said the sector was hoping for a boost from the easing of restrictions, particularly guidance on working from home.
“Now that will be lifted, that will speed up ongoing events and activities. Consumer demand is out there, there is an appetite to get back out there and if we get through the next few months the industry can undoubtedly look forward to a successful recovery from Easter onwards.”