Hospitality businesses in the City of London and Birmingham hit hardest by the pandemic

The City of London and Birmingham have both lost one in seven of their pubs and restaurants since March 2022.

Pubs and restaurants in the City of London and Birmingham city centre have been hit the hardest by the Covid-19 pandemic, according to the Market Recovery Monitor from CGA by NielsenIQ and AlixPartners, with both areas reporting a net decline of 14% of their licensed premises between March 2020 and June 2022.

The monitor demonstrates that many pubs and restaurants are dependent on office workers and tourism, with a shift to hybrid working culture heavily impacting the capital’s Square Mile district and Birmingham city centre.

Wider London lost 10.5% of its pubs and restaurants, while North and East London now have 8% and 9.1% fewer licensed premises respectively. Other UK cities have also seen net declines, with Manchester reporting -4.5%, Edinburgh -5.3%, Glasgow -10% and Liverpool -1.3%.

Karl Chessell, CGA’s director for hospitality operators and food, EMEA, said: “The City of London’s hospitality market was hit harder than most city-centres by Covid-19, with lockdowns and restrictions limiting commuting and tourism initially.

“However, shifts in working patterns are going to be permanent for many, and this has led to a sustained impact on the centre of the capital. Many venues have closed their doors over this period, and it is uncertain if they will open again. It is not all doom and gloom with other parts of London proving more resilient but now more than ever it is important to get a hyperlocal understanding of each area and the local demand.”

Graeme Smith, AlixPartners’ managing director, added: “This shock is tempered by the fact that some UK cities – those that perhaps have a more diverse mix of business, leisure and residential demand – have not seen anything like the same impact. Given the catastrophic events of the past two years, numbers have held up well. Ultimately, this is as much about the changing nature and location of demand, and the eating and drinking out market will inevitably adjust to these shifts, in the longer term.”