Operators issue plea for clarity amid fears of further restrictions

Hospitality operators have issued a plea for clarity after reports suggested further restrictions were under consideration and could serve up a further financial blow ahead of Christmas.

UKHospitality chief executive Kate Nicholls said it was “crucial” that the government gave as early a signal as possible about whether further Covid restrictions were to be imposed, and what they might be, “to allow businesses to salvage something from Christmas and the New Year”.

Prime minister Boris Johnson convened his cabinet yesterday to discuss the government's response to the Omicron variant, afterwards saying it had "ruled nothing out" but was waiting for more data.

Operators have seen a “catastrophic” number of cancellations as people have been told to work from home and many are also not socialising in an attempt to avoid getting ill before Christmas.

Yesterday two-Michelin-starred chef Tom Kerridge tweeted: "Just let us know". He described the current situation as "limbo land" asking how others were coping with placing orders for supplies, dealing with customer enquiries and planning staff rotas.

Nicholls added: “Trading has already been hugely damaged by the steady stream of pessimistic news following the discovery of the Omicron variant, at a time when hospitality would normally expect to be making a quarter of its annual profits."

According to UKHospitality, it costs hospitality businesses around £10,000 to close each site and a subsequent £10,000 per month on overheads – costs many businesses can ill-afford at this time.

Nicholls added: “Trading levels are so poor that the need for proportionate government support is already acute, and urgently necessary if businesses, jobs and livelihoods are to be secured. An extension to business rates relief and the lower VAT rate will help longer term planning and budgeting but speedily delivered grants will be vital to short-term business survival.”

Iain Hoskins, owner of Ma Pub Group, Ma Boyle's Eatery & Alehouse and Tempest on Tithebarn in Liverpool, said that more government assistance was “essential now if we are to make it through this next stage of the pandemic”.

He estimated his businesses have lost about £50,000 of bookings in the past 10 days.

“I dread to think what will happen if restrictions are brought in. Our locations are based in the business district of Liverpool so we are very sensitive to changes in working patterns, and certainly we were only just starting to see normal daytime footfall return last month,” he said.

He added that January and February trading was “incredibly difficult in the best of times”, normally offset against a good Christmas. However, he said many operators were “surviving on a knife edge at the moment” given the impact pandemic restrictions have already had on businesses.

Scores of businesses have decided to close their doors early amid soaring cancellations and Covid outbreaks leading to staffing shortages.

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