Hospitality industry struggles as more drinkers return

Just over half of consumers visited a hospitality venue in the first 10 days after lockdown restrictions were lifted in England last month, however the industry remains in a ‘fragile state’ due to staff shortages, a trade body has warned.

According to a survey by UK Hospitality, with data provided by CGA, 56% of consumers visited an on-trade venue in the first 10 days after 19 July 2021, dubbed ‘freedom day’ in England.

The return was much faster when compared to summer 2020’s reopening after lockdown restrictions, with 33% of drinkers heading back to bars and restaurants.

The survey found that it took more than six weeks for consumers to return in similar numbers to the previous year, while 45% of respondents said they will make their first trip to an on-trade venue in the next month.

UK Hospitality said the figures signal ‘growing consumer confidence’ in hospitality experiences, led by extensive hygiene and safety measures.

After the first lockdown in 2020, hygiene and cleanliness were the top reasons dictating people in choosing which venue to visit, but this slipped to fourth place this year, behind price, convenience and food quality.

Prior to the pandemic, hygiene and safety were the fifth priority.

Struggling industry

While the numbers are positive, UK Hospitality said businesses in the industry are fighting for survival as they deal with dire staff shortages.

According to the latest ONS figures cited by the trade group, UK job posts hit a record high, with the hospitality industry reporting a 10% vacancy rate – equal to 210,000 roles.

Kate Nicholls, chief executive of UK Hospitality, said: “Eating and drinking out is safe and we encourage everyone to rediscover their favourite venues if they haven’t already. However, while rising customer numbers is welcome news, the hospitality sector is by no means out of the woods.

“Hospitality venues are struggling to return to pre-pandemic levels of revenue with staff shortages hindering their recovery.”

Nicholls called on the UK government to provide an extension of the business rates relief holiday until at least October, as well as make the VAT cut for the sector permanent.

She added: “Such measures will allow the hospitality sector and the people it supports to play a full role in the UK’s economic recovery.”

The hospitality industry was responsible for 40% of the UK’s total economic growth between the first and second quarter of 2021, new data revealed.