As pubs in the UK close, cut back on staff, or rethink their business models due to the Covid-19 pandemic, new research reveals that many ‘have only days left to survive.’
The hits just keep coming…
According to data compiled by app MatchPint and KAM media, which collected information from a total of 317 pubs, 52% of individual pub operators said they would not survive more than one month, despite the supportive measures announced by UK Chancellor Rishi Sunak on March 17.
In his address, Sunak said he would extend the business rates holiday (read: tax rates) announced in last week’s budget to cover all businesses in the retail, hospitality and leisure sector.
But despite the government’s lifeline, the study’s data found that 22% of individual pub operators said they had just days to survive, the principle reason being concern over their ability to pay rent due on March 25.
While private renters and housing association tenants, as well as landlords, have received assistance from the government in the form of eviction suspension and mortgage holidays, businesses such as pub owners have not.
Even before the government’s social distancing measures were announced, many UK pubs, bars and restaurants were already struggling.
MatchPint and KAM media’s study also found that two-thirds of pubs in the United Kingdom say they will have less than 20% of their total staff remaining should current measures be in place for the next 12 weeks.
A March 17 poll, which sampled 500 customers in the UK aged between 18 and 65, found that 58% of respondents who regularly visit pubs, bars and restaurants will stop visiting due to the pandemic, with another 28% saying they will go less frequently.
According to the Drinks Business “the industry is pushing for a rescue plan that would involve giving £250 per employee per week until the end of June,” a projected expenditure £4 billion to save a total of one million jobs.
Not enough bad news for you? There’s this…