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On-trade sales drop 71% amid covid-19 pandemic

Sales in UK pubs, bars and restaurants dropped 71% during the final week of trading before venues were ordered to close to stem the spread of coronavirus.

Sales in UK bars, pubs and restaurants fell 71% in the week ending 22 March

On-trade venues in the UK were ordered to close their doors on 20 March by the government as it implemented strict social distancing measures to mitigate the spread of covid-19.

Figures released by the Coffer Peach Business Tracker show that like-for-like sales in the week ending 22 March at pubs, bars and restaurants across the UK were down 71%.

Trading in restaurant chains declined 75% and managed pubs saw a sales dip of 67%. UK bars were the hardest hit, with sales plummeting 88% during the period.

Phil Tate, group chief executive of CGA, the business insight consultancy that produces the Tracker, said: “Many pubs and restaurants, especially away from London, had stayed open even with dwindling trade after prime minister Boris Johnson’s warning at the start of the week for people to avoid going out. The closure order on Friday obviously then killed all business overnight.

“It was pretty clear that more and more businesses would have shut up shop anyway even without the closure and then lockdown orders, as CGA’s snap consumer poll showed that more and more of the public were going to give up on even attempting to go out.”

Following the government-ordered closure of UK pubs and bars, the only on-trade venues operating are those offering takeaway and delivery services.

Since ordering the closure of on-trade outlets and other non-essential services, the UK government has agreed to pay 80% of wages for employees who are not working, up to £2,500 (US$2,900) a month.

Lawmakers have also introduced emergency legislation to prevent landlords from repossessing commercial properties if businesses are unable to pay their rent during the covid-19 pandemic.

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