Hospitality sales down 10% following threat of riots

Last week’s threat of riots across the country led to a significant drop in hospitality sales, with CGA by NIQ reporting a 10% drop on Wednesday 7 August.

UKHospitality members have suggested the impact on sales in towns where rumoured protests were planned to take place was as high as 40%, with businesses reporting footfall down by as much as 75%.

Many hospitality venues across the UK closed their doors on 7 August due to concerns of rioting.

The police at the time were monitoring reports of at least 30 possible gatherings. Fortunately, the evening resulted in peaceful anti-racism protests and no damage to hospitality venues was reported that evening.

The concerns came days after Holiday Inn hotels in Rotherham and Tamworth were attacked by far-right groups while cafés and shops across the country were looted and damaged.

Over the weekend, the business secretary Jonathan Reynolds backed UKHospitality’s calls for insurance companies to act swiftly to help businesses recover from the violence. Reynolds asked the Association of British Insurers (ABI) to resolve claims as quickly as possible.

Kate Nicholls, chief executive of UKHospitality, said: “These figures are startling and shows the enormous impact the riots, and threat of further disorder, have had on our high streets and communities.

“Bustling, vibrant city centres were turned into ghost towns as the public stayed at home and businesses shut.

“Thankfully, protests and riots didn’t materialise as feared this weekend and we can now turn to how we support our high streets to recover, at a time when many were already struggling with the affordability of running a hospitality business during challenging economic times.

“Hospitality is the glue that knits our communities together and our sector stands ready to work with the government to play a central role in the renewal of our high streets after the challenges of the last 10 days.”

She added: “For those businesses sadly affected, that work has already begun and I’m grateful that the secretary of state has backed our call for swift action from insurance companies dealing with claims. Quick action on practical measures like insurance claims will be crucial for businesses to get back on their feet.”

UKHospitality created a support hub for operators affected by the riots, offering practical and economic support as well as advice.