Scottish hospitality businesses cutting staff hours and supplier orders after Christmas party plea

Some hospitality and late night businesses in Scotland are cutting staff hours and reducing supplier orders in a bid to stay afloat after people were advised to cancel Christmas parties, a trade body has said.

On Thursday Public Health Scotland issued advice to defer festive gatherings, while first minister Nicola Sturgeon backed the advice at her Friday briefing.

The Night Time Industries Association (NTIA) Scotland said businesses such as nightclubs, bars and restaurants should be compensated for lost bookings on a ‘pound for pound’ basis.

It said some members had seen a 30% decline in footfall since last Thursday while staff hours and supplier orders were being cut back and millions of pounds of fresh food stock could go to waste.

The NTIA estimated more than £1bn of economic damage to the sector and its supply chain was already "baked in" for December alone.

It said it was “morally and economically untenable” for the Scottish government not to announce any further business support while encouraging customers to cancel bookings.

Gavin Stevenson, vice-chair of the NTIA Scotland, said: "It is now clear Scottish government have left the sector open in name only - technically open but telling our customers not to come, just as Boris Johnson did back in March 2020.

“Our sector has now seen a critical decline in festive season trade, resulting in a threat to the very survival of Scottish small businesses and 100,000 jobs.

“If the new Omicron variant threatens the NHS then of course our sector will again step up and play our part – but government must also now step up and commit to ensuring business survival with immediate financial support that replaces lost festive season income on a pound for pound basis to protect jobs and businesses."

Last week UKHospitality www.thecaterer.com/news/hospitality-business-rates-relief-scotland-extendedl">criticised the lack of support for operators in the 2022/23 Scottish Budget, warning Christmas and Hogmanay trade was in “tatters”.

Hospitality and leisure businesses in Scotland will continue to receive 50% business rates relief for the first three months of the next financial year, but UKHospitality said the move only “moved financial pressures a little further down the line”.

Photo: Shutterstock / Ms Maria